Starting the journey: setting a savings strategy

Saving for your first home can feel like a marathon, not a sprint. There’s a lot to consider—how aggressively should you save, should you invest some of it, and are there government schemes that could help you along the way?

When I moved to Australia, I wasn’t even sure if I wanted to buy property here. But I knew I wanted my money to grow. So while figuring out my long-term plans, I started investing a portion of my savings.

Fast forward a few years—I was in a relationship, and we began seriously discussing buying a place together. We pooled our resources, reviewed how much we had saved for a deposit and stamp duty, and worked out a comfortable mortgage amount based on our actual budget—not just what the bank was willing to lend us.

That early planning—saving consistently in both cash and investments—made it easier to determine how much more we needed and gave us a clearer timeline for reaching our goal.

Learning about the FHSS: a hidden advantage

Once we were committed to buying, I started exploring all the available options to boost our deposit. That’s when I came across the First Home Super Saver (FHSS) Scheme. It seemed a bit complex at first, but after some research, I realised it was well worth considering.

The appeal was clear:

• It allowed me to reduce my taxable income
• I could invest my savings within super
• It would potentially help me reach my deposit goal faster

Having come from Canada, where we had a similar program, the idea of using a retirement account to save for a first home wasn’t unfamiliar. Since I was already consistent about saving and investing, the FHSS felt like a smart strategy.

How I set it up: salary sacrifice

To get started, I reached out to my employer and set up a salary sacrifice arrangement—diverting part of my income directly into super each month. My goal was to reach the FHSS contribution cap for the year. At that time, the cap was $15,000 per year (with a $30,000 lifetime limit). It's since increased to $50,000 total, giving today’s savers even more room to benefit.

When I had a large enough safety net outside of super, I even salary sacrificed 100% of my income for a short time. This won’t work for everyone, but it allowed me to maximise the amount I could contribute within the allowable timeframe.

Meanwhile, I kept saving and investing outside of super to make sure we were still on track.

The not-so-simple side: tracking and transparency

One of the biggest challenges with the FHSS was tracking everything. The ATO and super funds don’t exactly make it easy to see:

• How much you’ve contributed toward FHSS
• Whether you've hit your cap for the year
• What portion of your contributions will be eligible for release
• How your FHSS money has performed

I had to maintain a detailed spreadsheet to stay on top of it all. And even then, when I looked back to write this article, I couldn’t find clear records of the withdrawal amount or the investment performance of my FHSS funds. It honestly felt like a black box at times.

That lack of transparency made it obvious why more people don’t use the FHSS—even though it can be a great tool.

Timing the release: a stressful misstep

Because we were house-hunting during the pandemic, I held off on applying for a FHSS determination. I wanted to keep contributing as long as possible and give my money more time to grow. I figured I’d apply when I was sure we’d found the right home.

Eventually, we did. After a year of open houses, failed auctions, and a lot of discouragement, we finally found a place we loved—despite its underwhelming online photos. We acted quickly: scheduled inspections, made an offer, and got accepted.

Then, in the middle of the excitement, I realised something important: I hadn’t yet applied for a FHSS determination, which is a required step before signing the contract. In a bit of a frenzy, I contacted the real estate agent and asked if we could push the contract date forward by one day. That gave me just enough time to log into the ATO portal, request the FHSS determination, and avoid any issues with eligibility.

The process of releasing the funds was relatively straightforward once initiated—but definitely not something you want to be thinking about when you’re scrambling to sign contracts.

From contract to keys: the final steps

The settlement process was a whirlwind of paperwork—mortgage approvals, solicitor emails, and watching a big chunk of our bank account disappear for the deposit and stamp duty.

It was stressful, exciting, and exhausting all at once. But there’s nothing quite like walking into your new home for the first time, knowing you made it happen.

What I’d do differently

Looking back, there are a few things I’d change:

• Start contributing to FHSS earlier—to give compounding more time to work.
• Encourage my partner to use the scheme too—we could have doubled our benefit.
• Track FHSS contributions more clearly—even though it’s tricky, it’s worth the effort.
• Apply for the FHSS determination earlier—to avoid the last-minute stress before signing the contract.

Final thoughts: saving, buying, and building a plan that works

Buying your first home is deeply personal. Some people save in cash, others invest, some get help from parents—and some, like me, explore government schemes like the FHSS.

For all its challenges, the First Home Super Saver Scheme helped me reduce my tax, invest with purpose, and ultimately buy my first home. If a home is part of your financial plan, it’s definitely worth considering as part of your broader strategy.

Just be prepared to track carefully, understand the rules, and give yourself plenty of time to get it all done.