A recent report in The Adviser reported on the findings of a recent study into the ability for Australians to save a deposit for a new home. It found that borrowers who are struggling to save a deposit are most likely to be spending half their income on rent, utilities and groceries.
The research, conducted by ING DIRECT, found that Australians spend on average approximately 20% of our income on rent and mortgage, 15% on utilities and 12% on groceries. It also found that we save just 6.2% of their salary, with 18% of households spending more than they earn.
Western Australians were found to pay the most on mortgage and rent payments, spending an average of $1,249 per month whilst in South Australia the spending was the lowest, spending $787 per month on mortgages and rent, while at the same time having the nation’s highest saving rate at $416.
The report also found that Australians devote the second biggest chunk of their salary to household bills, spending an average of $633 per month and $428 per month to credit card repayments. The rest of the income is used up on transport at 6.9 per cent, holidays at 5.8 per cent, entertainment at 4.3 per cent, health at 4.2 per cent and clothing at 3.2 per cent.
While a minimum deposit of at least 5% of genuine savings is generally required, there are options that may be available to you.
For example, some lenders will consider rental history as part of the genuine savings and if you combine this with a gift or first homeowners grant. Alternatively, family guarantees can also mean you can buy your own home sooner.
Call us today, your local mortgage broker in Noarlunga to discuss what possibilities there are for you.
Fiona Manley on 0421 360 205 or Steve Pratt 0427 390 929, or
email at email@example.com