The Great Australian Dream starts with owning a home. Buying your own house is exciting and life-changing. Except for the part where you have to save for the deposit, especially for those stuck in a rent situation.

Save for your home loan deposit while renting

The good news is there are ways to go around your budget and save a deposit for your home, even while renting! If you are really serious in committing to this goal, you have to be fully dedicated, disciplined, and responsible.

Sharing with you some of the tips to boost your home loan deposit savings—even while you’re renting:

ASSESSMENT

The first step is to assess your financial situation by identifying your total budget, your spending habits, and debts. Check your bank statements and receipts to monitor your spendings. At this point, you have to determine your wants versus your needs (and you might be surprised that majority of your spendings goes to your ‘wants!’) Take the time to do this as this is a crucial part.

Once you know where your money is going you can start to budget and make a plan for saving.

BUDGETING and SAVING

This can be a daunting task as you have to think ahead and really disciplined yourself in sticking to the budget you created for you to be able to save.

You can start by finding ways to lower your monthly rent. You can opt to finding a roommate to help you with the cost of the rent. Or you can move to a more affordable location or smaller or older place. The hint is to compromise. You want that dream house, right? Any of these tips can help you save, say a $100 dollars per week, which could add over $5000 to your savings account each year.

Keep an eye on the energy you use. Chances are, your monthly utility bills are a big fraction on your spendings. Another way is to look for ways to earn extra cash. There are various freelance jobs online where you can check and might match your skills.

Put your tax refund straight to your savings account. Maximise your savings by placing them into high interest earning accounts.

There are lenders which accept rental payments in lieu of genuine savings because your ability to pay rent on a fortnightly or monthly basis can show them your ability to meet your mortgage repayments. Soul Finance Group has access to these lenders and loan deals that are tailor-fitted to your needs and spend capabilities.

Never underestimate the power of your income. Even while you’re renting, your dream home is still within reach. With the right mindset and a professional to help you, you can never go wrong.

Think you’re ready to buy your own home? Find out now.

Disclaimer:

Your full financial needs and requirements need to be assessed prior to any offer or acceptance of a loan product.

Credit Representative (486927) is authorised under Australian Credit Licence 389328.

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