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Saving for your deposit

Buying a property? The bigger your deposit, the better your options.

If you're thinking of buying property, bear in mind that the total costs will probably end up to being more than just the property price. Even after you’ve allowed for your deposit, you'll need to take all your upfront costs into account, like your stamp duty and legal fees. (Our Home Loan Fee Calculator can provide an indication of these figures.) So it's important to focus on saving as much as you can. 

Set a goal

Start thinking about how much you’ll need to save, and how soon you’d like to get that property. If you’re eligible for a First Home Owner Grant, that money could help.

We can help you estimate what you can afford to borrow, giving you the confidence to make an offer on your next property. Getting an Approval in Principle will help you:

  • Know how much you can afford to borrow
  • Plan your budget
  • Be confident to make an offer
  • Be seen by agents as a serious buyerdisclaimer

Once you've set your savings goal, ANZ has tools and calculators to help with your savings plan. 

Set your budget

Now that you've worked out how much you need to put away in order to reach your savings goal, it's time to plan your budget and stick to it. Think about making regular savings from your wages. Look into cutting expenses and saving on unnecessary items. Never underestimate the power of cutting costs, no matter how insignificant they seem. Small savings can add up to large amounts over time. 

The ANZ budget planner may be useful, helping you add up all of your earnings and expenses to give you an estimate of how much money you may have left at the end of your selected time period.

Make regular deposits into a savings account

Consider saving money by making regular deposits into an account that pays interest. If you’re serious about saving for a goal and don’t need regular access to that money, you can consider an ANZ Progress Saver account. And if you need access to your savings, consider an ANZ Online Saver account instead.

Reduce your debts

If you have existing debts, it's important to assess and come up with a plan to reduce these debts with regular weekly or fortnightly payments. Interest rates on some loans can be higher than a typical home loan, so it may be a good idea to identify these debts and pay them off first.

Don't have enough saved? There are other options to help you buy your property.

Lenders Mortgage Insurance (LMI)disclaimer

If you need to borrow more than 80% of the amount your property is valued at, you may need to pay Lenders Mortgage Insurance (LMI). For some property types, LMI might be required when LVR is less than 80%. Banks often call this percentage the 'LVR', which stands for 'Loan to Value Ratio'. LMI protects lenders against a loss if a borrower can no longer afford their loan repayments. This one-off fee is based on several factors including the loan amount and LVR.

If the property has to be sold, LMI can cover the lender if the sale price of the property does not cover the outstanding loan balance plus claimable costsdisclaimer. It's important to note that LMI covers the lender, not the borrower.

ANZ Security Guarantee

An ANZ Security Guarantee could allow a family member to use all or part of the equity in their home as additional security for a part of your loan amount. This guarantee could help reduce your LVR to less than 80%, and save you from having to pay LMI if you have a guarantor who agrees to accept the obligations associated with entering into a guarantee. But it’s important to remember that if for some reason you default on your loan, ANZ can seek to recover from your guarantor. Agreeing to being a guarantor is a very important decision.

Deposit bond

A deposit bond take the place of all or part of the 10% cash deposit usually required upfront when you purchase a residential property. It could be an option for home buyers who have funds tied up in investments or in their home, and need to provide a deposit. ANZ does not offer deposit bonds. Please contact your legal or financial adviser who may be able to provide you with more information about deposit bonds.

Buy property with someone elsedisclaimer

Some people team up with family members or even close friends to pool resources and help get the property they want. It's important to note that buyers who share ownership like this generally have a strong agreement prepared in case of issues such as:

  • income and other expenses 
  • whether one party can buy the other out
  • what happens if someone wants to sell but the other doesn't

If you're considering sharing ownership of a property, it may be a good idea to get the right legal and financial advice first.

Thinking about schools?

ANZ School Ready®

If you’re considering private or Catholic education, figuring out how you’re going to pay for it can be daunting. That’s why we’ve created ANZ School Ready® – the first online tool which could help you save and plan for your children’s school fees. Visit for more information.

Any advice does not take into account your personal needs and financial circumstances and you should consider whether it is appropriate for you and read the relevant Terms and Conditions, Product Disclosure Statement and the ANZ Financial Services Guide (PDF, 104kB) before acquiring any product. 

All applications for credit are subject to ANZ's credit approval criteria. Terms and Conditions apply and are available on application. Fees, charges and eligibility criteria apply. 

ANZ can provide Approval in Principle to eligible customers who apply for an ANZ home loan and complete an application form. An Approval in Principle is an approval for a loan subject to conditions being met, including that security is satisfactory to ANZ.

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Lenders Mortgage Insurance (LMI) is paid by the borrower and protects ANZ in the event that the borrower defaults and a shortfall arises following the sale of the security property. ANZ usually requires LMI where the Loan to Value Ratio (LVR) is above 80% (depending on the type of property).

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If ANZ makes a claim under LMI, the insurer may seek recovery from the borrower, or any guarantor, for any shortfall amount.

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For joint borrowers, each borrower is jointly and severally liable to ANZ for the full amount of the loan or facility.

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