03 Aug 3 Helpful Smart Ways on How to Save for a Home Deposit
Building up a home deposit is one of the most challenging steps of getting on the property ladder.
First home buyers often need to put down tens of thousands of dollars as a deposit because of rising house prices– which can seem impossible unless you’re earning a fortune, or are lucky enough to have borrowed from the Bank of Mum and Dad.
If you are finally decided to own your first home but the thought of saving for a home deposit seems to get in the way, read on these three helpful and smart steps to get you going:
Analyse your current financial situation.
Assess your current spending habits and work from there. Know where your money is going by determining which household cost eats up most of your budget. Spending Tracker is an app where it helps you keep track of your expenses. Set a budget and stick to it. Don’t spend on items that are not essential. Avoid impulsive purchases. These habits delay your dream of owning a home.
Manage your debts.
Once you had prepared your budget, get on top of your debts. Pay off your credit cards as this helps you increase your borrowing power. Consolidate your debts to eliminate multiple payments and interest rates. If you wish to know how much you can potentially borrow, check with our calculator.
The key to building up a deposit is to start saving as much as you can as soon as you can. Ideally, you have to save 20% of the purchase price of the property. If you have less than 20%, there are banks and lenders that offer deal to clients who have this kind of circumstance.
Which leads to the final step…
Seek professional help.
Consulting a finance broker can lead you to a variety of deals available in the market. Soul Finance Group has access to a variety of lenders and banks. We can help determine if you are eligible to a First Home Owner Grant (FHOG) and can even guide you in the application.
You can also consider whether your parents or other family members may be willing and able to help you out with a one-off financial gift or interest-free loan. If you are renting a property and has an excellent payment history, we can help you use this in your home loan application as there are lenders which offer that kind of deal.
The process of owning a home can be tedious but if you have the right sources, you’ll be living in your dream home in no time. Consult with me today to get you started!
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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. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.