Skip to main content Skip to main navigation
Skip to access and inclusion page Skip to search input

Sorting out your budget to help save for a home deposit

Giving your budget a fine tune – or setting one up if you haven’t already – could help find ways you can give your home deposit savings a boost.

A good place to start is by getting an indication of how much you could borrow – that’s because once you know what price range you’ll be able to consider, you can work out what size deposit you’ll need.

Our borrowing power calculator is an easy way to get an idea of how much you can borrow. You’ll need to give some details, such as your income, your expenses and any outstanding debts (think credit cards and personal loans). You can also alter the interest rate, so you can get an idea of what your borrowing power (and repayments) would be at current rates, as well as what they could be if interest rates move up or down.

Get an idea about other costs involved with buying a home

When you buy a property you’ll need to pay a range of upfront costs in as well as the deposit.

These can include for example:

Get an idea of where your money is going now

When you know how much you can borrow (or at least have a good idea) and what size deposit you’ll need, it’s time to think about how to get your finances in order.


Looking at your budget is a good start – and if you don’t have one, now could be the time to get one up and running. Our online budgeting tool can help – like the borrowing power calculator you’ll need to input information about your income and expenses, but at a more granular level (like how much you pay for a gym membership or for your mobile phone). You can also include any regular repayments you might have on personal loans or credit cards.

Find out more about setting up a budget

See anywhere you could cut back or make changes?

Once you’re done, take a look at where you money is going. Perhaps you’ll see where you could make some adjustments (cutting down on buying lunch at work for example – it might seem like a small thing, but over time it can really add up). Just make sure you’re realistic – if you’re too drastic, you could set yourself up to fail.

Establish a savings history

Yes, you’ll need to save for a deposit. But having a steady savings plan to reach it can also help with getting a loan, as lenders like to see a savings history. This can give the lender a level of certainty that the borrower will be in a position to make regular repayments.

It’s a good idea to open a separate bank account; ideally one that rewards you with bonus interest when your savings are on track. Find out more about our Westpac Life account - a flexible savings account that can also pay you bonus interest each month you grow your balance1.

When you’ve got some savings built up, you may also want to consider moving them into a term deposit –it can earn a fixed interest rate on your savings, and it can also help you steer clear of any temptation to dig into your savings as your money is locked away until the end of the chosen term deposit period.

Find out more about term deposits

Things you should know


  1. Bonus interest: You will be eligible for bonus interest if during the month (subject to transaction processing times):
    a. your account balance has not fallen below $0; and
    b. you (or someone on your behalf) have made a deposit of any amount; and
    c. the account balance on the last business day of the month is higher than the account balance on the last business day of the previous month.
    Interest paid into your account does not qualify as a deposit in terms of bonus interest eligibility.  

This information does not take into account your personal circumstances and is general in nature. It is intended as an overview only and it should not be considered a comprehensive statement on any matter or relied upon as such.