How to save and grow your first home deposit

Create a budget for your deposit savings
A structured budget is one of the most powerful tools when saving for a house deposit. It helps you stay disciplined, track your money, and direct more towards your goal.

Start by reviewing your current spending. Focus on prioritising needs over wants, cutting back on non-essentials and redirecting that money into savings. Small sacrifices today can make a big difference over time.

To start creating your budget, try the Sorted Budget Planner to put a personalised plan in place.

Be purposeful with your budget
A great way to show the bank that you’re financially prepared for a mortgage is to ensure that the total amount you’re saving each month (excluding KiwiSaver contributions) plus your rent payments equals or exceeds what your mortgage repayments would be. For example, if your expected mortgage will be $2,500 per month and your rent is $1,800, aim to save at least $700 on top of rent each month. This demonstrates to lenders you can manage the financial commitment of a mortgage and strengthens your application.

Your budget doesn’t have to feel restrictive, it’s a tool that shows you where your money is going. By using this understanding, you can prioritise your spending to align with your goals.

Strategies to boost your savings
Here are some practical ways to stay on track and grow your deposit faster:

• Cut non-essential costs: Small changes can add up over time. Consider switching to a cheaper phone or internet plan, buying in bulk, cooking at home instead of dining out, cancelling TV subscriptions, and carpooling or taking public transport.
• Stick to your savings rate:  Set up an automatic payment from your account to a high-interest savings account to make savings consistent, and don’t spend it or withdraw it once it’s there!
• Manage debt: Avoid unarranged overdrafts and ensure credit cards are paid off monthly to prevent interest charges. Steer clear of taking on new debt and avoid buy-now-pay-later apps like Afterpay or Laybuy.
• Increase your income: Look for opportunities to boost your earnings by asking for a pay rise, if you haven’t had a recent pay review, back yourself and start the conversation. You could also take on extra work or hours, sell items you no longer need, or rent out a spare room to help cover your current rent or living expenses.

Regularly reviewing and adjusting your budget is key to staying on track. Prioritise your deposit savings and maintain momentum.

Make the most of KiwiSaver
If you’ve been contributing to KiwiSaver for at least three years, you will be eligible to withdraw most of your balance for your first home. Increasing your contribution rate is an easy way to grow your deposit, since contributions are deducted directly from your pay, removing the temptation to spend.

Next steps: Start building momentum
Growing a house deposit takes discipline and planning, but with the right strategies, it’s achievable.

• Create a detailed budget
• Cut back on non-essentials and boost savings
• Maximise your KiwiSaver contributions

Not sure if your KiwiSaver investment is aligned with your home ownership goals? An Enva financial adviser can help ensure you’re on track.

Our advisers can help you plan your deposit strategy and make sure your KiwiSaver is working hard for you. Give us a call on 0508 287 672 or fill out the form below.

Need more support? Check out our First Home Buyers Guide for step-by-step help on your journey to home ownership.

*The information contained in this blog is for general information purposes only. It is not intended to constitute financial advice and does not take your individual circumstances and financial situation into account. We encourage you to seek assistance from a trusted financial adviser.