Thinking of buying your first home in Sydney? Brace yourself!

There’s no denying Sydney’s appeal—gorgeous beaches, a world-class lifestyle, and abundant career opportunities.

But if you’re a first-home buyer hoping to get a foothold in the Australian property market, Sydney may also be one of the toughest places to do it.

How long does it take to save a deposit in Sydney?

According to Domain’s 2025 First-Home Buyer Report, it now takes the average couple 6 years and 9 months to save a 20% deposit for an entry-level house in Sydney. That’s the longest saving time of any capital city in Australia.

And if you think switching your focus to a unit might ease the pressure, think again: Sydney still ranks as the slowest city for saving a deposit on an entry-priced unit.

Why is Sydney so challenging for first-home buyers?

There are a few key factors at play:

  • Sky-high property prices: Entry-level homes remain significantly more expensive than in other capitals.
  • Wage growth lagging behind property prices: Even with steady income, savings can’t keep up with rising prices.
  • Mortgage stress is widespread: Repayments now consume more than 30% of income for many first-home buyers in Sydney, crossing into what’s defined as mortgage stress.

Where are things more achievable?

As it happens, Darwin offers the fastest path to home ownership in 2025. Saving for a unit deposit there takes half the time compared to Sydney.

Cities like Perth are also proving more accessible thanks to a combination of lower property prices and higher average wages. These cities offer shorter saving timelines and a less stressful path into the market.

What does this mean for first-home buyers?

Where you buy and what you buy can significantly impact how quickly and affordably you enter the market.

In some cases, choosing a unit over a house or looking slightly outside the CBD can shave years off your savings timeline.

It’s a good reminder that there’s no one-size-fits-all approach to home ownership.

A smarter way to approach the Sydney market

If you’re planning to buy in Sydney (or anywhere in Australia), a well-structured mortgage strategy can help you get there sooner and with more confidence.

This is where a good mortgage broker adds real value. They’ll work with you to:

  • Understand your borrowing capacity
  • Explore alternative strategies and locations
  • Tailor a mortgage solution that suits your goals, income and timeline

Final thoughts

Sydney might be Australia’s most competitive property market for first-home buyers, but with the right advice and a smart savings and borrowing plan, it’s not out of reach.

Ready to explore your options? Let’s connect