Tips to Save for a House Deposit Faster
Introduction
Ask any first-home buyer what feels hardest about getting onto the property ladder, and you'll hear one word: deposit. Between rising house prices, everyday expenses, and uncertainty about how much is "enough," it can feel impossible to save.
The good news? With the right strategy - and the right advice - you can make real progress faster than you think.
At Innovest, we've helped hundreds of first-home buyers build deposits through smarter saving, KiwiSaver planning, and access to grants.
This guide shows you how to save faster, smarter, and more confidently toward your first-home goal.
1. How Much Deposit Do You Actually Need?
The short answer
Most NZ lenders prefer a 20% deposit, but 10% is often enough for first-home buyers if your finances are solid. That means:
- $60,000 deposit for a $600,000 home (10%)
- $120,000 for a $600,000 home (20%)
Under certain Government schemes the deposit can be as low as 5%, provided you qualify.
Why deposit size matters
A bigger deposit means:
- Lower monthly repayments
- Lower interest rates
- No (or less) Low Equity Fee (also known as LMI, LEM, or LEP)
2. Use KiwiSaver to Boost Your Deposit
Withdrawals for your first home
After three years of contributions, you can usually withdraw most of your KiwiSaver balance - except $1,000 that must stay in the fund.
Read our {link} KiwiSaver guide and our {link} When to Apply for Your KiwiSaver Payout article for timing tips.
3. Set a Realistic Target and Timeline
Saving for a deposit is easier when you know the exact number you're chasing.
Step 1: Know your price range
Talk to an Innovest adviser for pre-approval - this tells you what lenders will offer and therefore what deposit you'll need.
Step 2: Break it into milestones
Instead of one huge number, aim for mini-goals:
- 10% of deposit by month 3
- 25% by month 6
- 50% by month 12
Each milestone keeps motivation high!
4. Track Every Dollar - Awareness Is Key
Build a snapshot of your spending
Download 3 months of bank statements and group expenses into:
- Essentials (rent, groceries, transport)
- Discretionary (dining, subscriptions, shopping)
- Savings
You can't improve what you don't measure!
Cut "invisible leaks"
- Cancel unused subscriptions
- Switch to cheaper insurance or phone plans
- Cook more at home
- Compare power suppliers
Even $100 saved per week adds up to $5,200 a year - a full extra month of rent or a solid chunk of your deposit!
5. Automate Your Savings
Pay yourself first
Set up an automatic transfer the day after payday into a separate "First Home" account.
Treat it like a bill you must pay - to your future self.
Use different accounts for motivation
- Goal account: deposit savings (no debit card)
- Everyday account: weekly spending
- Emergency buffer: to avoid dipping into deposit savings when life happens
Automation removes temptation - and guilt.
6. Explore Side Income Streams
Small boosts can have a big impact:
- Freelance or weekend work (delivery, tutoring, gig apps)
- Rent out a spare room or parking space
- Sell unused items
- Use cashback apps or reward programmes
Every extra $200 a month could mean reaching your goal 6-12 months sooner.
7. Make Your Savings Work Harder
High-interest or bonus-saver accounts
Look for NZ savings accounts offering bonus interest when you make regular deposits and no withdrawals.
Term deposits
Ideal for medium-term savings (3-12 months). You'll earn slightly more interest while keeping funds safe.
KiwiSaver contribution increases
If you can, raise your employee contribution from 3% to 4% or 6%.
Employer and government contributions will multiply your efforts.
Learn about long-term compounding in Maximising Your KiwiSaver.
8. Leverage Government & Family Support
The First Home Loan
With the First Home Loan scheme by Kainga Ora the deposit can be reduced to 5% - but you must apply before you go unconditional on a property. Your Innovest adviser can help you apply correctly.
Family gifting
If your parents or relatives can contribute, lenders will usually accept a signed gift letter confirming it's not a loan.
9. Watch Out for Common Saving Traps
| Trap | Why It Slows You Down | Fix |
|---|---|---|
| Not tracking spending | You can't cut what you can't see | Use budgeting apps or bank tools |
| Saving after spending | Lifestyle creep eats the surplus | Automate transfers on payday |
| Relying solely on KiwiSaver | Access limited until purchase | Add a high-interest savings account |
| Ignoring small wins | Motivation fades | Celebrate each milestone |
10. Partner With the Right Adviser
Saving is only half the battle - the other half is understanding what lenders look for.
An Innovest adviser can:
- Assess your borrowing potential today
- Identify small changes to lift your approval chances
- Guide you through pre-approval
Start with a free chat with an Innovest adviser.
11. Example: Turning Small Savings into a Deposit
| Action | Monthly Saving | Annual Saving |
|---|---|---|
| Cancel unused subscriptions | $60 | $720 |
| Cut café coffee (2 × week) | $40 | $480 |
| Cheaper power provider | $30 | $360 |
| Side job 5 h/week | $400 | $4,800 |
| Increase KiwiSaver % | $150 | $1,800 |
| Total | $8,160 / year |
At that pace, you could grow a $24,000 deposit in 3 years - before counting interest, employer contributions, or grants.
12. Keep Motivation High
Visualise progress
Create a simple tracker or spreadsheet and mark milestones.
Seeing your balance rise builds momentum.
Reward consistency
Each quarter you hit your savings goal, treat yourself modestly - a meal out or a weekend getaway - so saving doesn't feel like punishment.
Stay connected
Follow success stories, talk with peers saving for homes, and lean on your adviser for encouragement.
Saving for a deposit doesn't have to feel endless. With expert guidance, access to KiwiSaver and grants, and a clear plan, you'll see progress faster. Innovest advisers specialise in helping first-home buyers across New Zealand make the dream achievable - one smart step at a time.
