For me I've been saving and spending what I need. Been saving since I started working at the age of 15. I only showed interest in property once interest rates dropped, First Home Owners Grant jumped to 14k and property prices dropped. That was early quarter of this year. I had saved a large proportion with it just accumulating interest in the bank and decided it was time to invest in something worthy. I researched on the internet and also attended a few seminars. Through these seminars I met one of Australia's top brokers/advisors Patrick Cranshaw from Perigee Finance. Top bloke who gave me very good financial advise and guidance towards owning my first home :D. I've never ever had a loan or credit card. I've been taught well by my parents to spend what you have and only for what you need, not want. With the broker we sat down and compared all major banks and their offers. I chose the lowest interest rate offer, low bank fees, 100% Offset savings account, credit card with waived fees, at the time... being NAB (they aren't too shabby with customer service after I signed up). Anyway there have been not many lifestyle changes for me as I still live under a strict rule... Only spend what I have and if I really need it. To date I still have not touched my credit card. Anyway Jarerd has pretty much explained most of it... and I can't be bothered typing much further LOL. In my opinion and experience so far, if you are thinking about just saving for just the deposit now, you can't afford it or you'll be in struggle stress town... There's A LOT of additional fees attached that isn't shown. You won't believe how much extra there is involved. You don't want to dig yourself a hole. I highly recommend a broker. Especially if you are in Brisbane, QLD... go see Perigee Finance. PM for more details :D Check out the following links and have a good read. Google more info too. http://money.ninemsn.com.au/article.aspx?id=100636 http://money.ninemsn.com.au/property/tools...calculator.aspx http://www.commbank.com.au/personal/home-l...home-loans.aspx