Home deposit or wedding?

What comes first?

2018 is going to be a big year for love and marriage in Australia – if you’ve found the one, congratulations! But what’s next – a home or a wedding?

It’s a common scenario facing many couples – do you prioritise the wedding over the home, buy the home first and get married later, or save for both at the same time? The answer depends on your own personal preferences, financial situation and goals. Here are some useful tips to help you decide and maybe get there sooner.

Ensure you and your partner are on the same page

Money matters are a common cause of stress in any relationship, so it pays to ensure you’re both on the same page about your finances. Discuss your short-term and long-term goals and set your priorities together. It’s important to be open and transparent about your income and debts, so that you can work to make the most of your finances – and to help make your wedding and home ownership goals a reality. Talking about merging your credit cards and bank accounts to save money on interest and fees, is a great place to start.

Create a budget

Sit down with your partner and put together a budget and set some goals. Work out how to make the most of your joint income. You may like to seek advice from your financial planner about your long-term finances, but in the short-term there are plenty of tools around to help you budget and save, including budgeting apps. We like the simplicity of TrackMySPEND available on the ASIC MoneySmart website, or you can go online and find one designed for couples.

Establish a savings plan

Set measurable goals and be prepared to make a few lifestyle adjustments to save, save, save. That may mean axing your gym membership, cutting back on restaurant meals and finding free entertainment. It’s easy when you’re in love and all you want to do is spend your time together – so pack a picnic or go for a romantic walk on the beach!

You may also like to chat with us about setting realistic savings goals and planning how much you need to save for your wedding and home deposit. Establishing good savings habits will not only help you save more quickly, it will also hold you in good stead when it comes to applying for a home loan and paying back a mortgage. We can also help you set your budget, and savings plan!

Be willing to compromise

You may have always dreamed of a lavish 250-head fairy-tale wedding with doves, drone photography and a 10-piece orchestra, but the reality is it may not be financially viable, especially if you’re saving for a home deposit at the same. The average cost of a wedding in Australia is now $65,482, according to a survey run by Bride to Be magazine, but the big day can be as inexpensive as you like. You may decide to opt for a simpler affair, so that you can channel the rest of your savings into a home. At the end of the day, it’s about you and your partner committing to each other – that’s the bit that matters!

Consider buying your home first

For some couples, buying your home first could make good financial sense. Once you’re on the property ladder, you can save by making extra home loan repayments to build equity in your home. (When you save money in a savings account, you pay tax on the interest – which could mean it takes longer to save the amount you need).

The potential for your home to grow in value could also help you build up your equity. Once you have enough equity in your home, you can talk with us about refinancing your home loan and potentially withdrawing some of the equity to pay for your wedding. It’s a strategy that might not work for everyone, so do talk to us to see if it could work for you.

Call us to chat about your plans!

So, which comes first – the wedding or the home? There’s no right or wrong answer. If you’d like us to help you weigh up your options, find out your joint borrowing capacity and make your dreams a reality sooner, then give us a call! We can help with many aspects of your financial life together, from explaining whether you qualify for the first home owner’s grant and other incentives, to helping you set savings goals and determine your borrowing capacity, to getting a suitable loan to buy your first home together or a personal loan for your wedding. Please get in touch with us today!


This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. All loans are subject to lenders terms and conditions – fees, charges and eligibility criteria apply.

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Ben Judd

Ben Judd

Ben has made finance his life and has more than fifteen years experience in the banking and finance industry. Spending nearly a decade working for two massive Australian retail banks, Ben mastered the intricacies of the loan process from every conceivable angle. This insight proved a solid foundation before his move to mortgage broking in 2006. Ben has a superior level of product, loan structuring and general industry knowledge. This knowledge and Ben’s enthusiasm for tracking down the right product for his clients, guarantees complete satisfaction.

16th February 2018

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Ben Judd

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