A realistic twelve-month timeline for saving a first deposit

Buyers often describe the deposit as one enormous number, and one enormous number is easy to put off. A better habit is to treat it as a year with four quarters, each with a job to do.

Before you start, work out the whole cost of buying, not only the deposit. Transfer duty, legal fees, inspections and moving costs can add several percent to the price. Knowing the real target early saves a nasty surprise at the end.

Quarter one: find the leaks

Track every outgoing for ninety days. Do not try to change anything yet; just look. Most people find a handful of subscriptions and habits that account for far more than they guessed, and cutting those is easier than cutting groceries.

Quarters two and three: automate and test

Move savings out of your everyday account on payday, before you can spend it. Then run a trial of your future repayments by paying the difference between your rent and the likely mortgage into savings. If the trial is uncomfortable, you have learned something valuable while it is still cheap to learn.

Use these months to speak to a broker as well. A pre-approval tells you a borrowing range and flags credit issues that can take weeks to resolve.

Quarter four: shop with a budget

Start attending inspections in the last quarter, not the first. Looking too early is demoralising and teaches you to chase homes you cannot afford. By now you have a deposit figure, a pre-approval and a clear ceiling, and you can look with a purpose.