First Home Buyer Tips : Saving a Deposit

Buying your first home is a significant milestone. It’s an exciting time and when you’re well prepared, it can be a smooth and enjoyable journey… 

Here are some tips to help you save a deposit : 

1/ Set up a separate savings account for your new home and start saving today. Ask your employer to direct part of your pay straight to the savings account, or set up an automatic transfer from your main account. 

2/ Prepare a household budget. This will help you identify any surplus funds that can be regularly saved. It will also highlight areas where you can reduce spending to help reach your savings goal sooner. 

3/ Know your savings goal. The minimum you should aim for is 5-10% of the expected purchase price PLUS enough funds to cover the associated buying costs. The more you can save, the stronger your application will be, and there are substantial savings if you can build a deposit of 20% PLUS costs. 

4/ Understand the ‘genuine savings’ requirement. In most cases, lenders will request a history of regular and consistent deposits to your savings account over a three month period. 

5/ Consider lump sum deposits to your savings, where possible. You may receive a bonus, tax refund, family gift, sell an asset or be eligible for a first home owner grant. These sources can all help reach your savings goal faster – however, they may not be treated as genuine savings. 

6/ Seek the support of a home loan expert. At Mortgage Choice in Coolum Beach, we want to help you reach the goal of purchasing your first home. Whether you’re ready to purchase now, or just starting to plan your journey, we look forward to working with you. 

Call Jodie on 0407 646 792 or send an email to jodie.dupuy@mortgagechoice.com.au.

 

Posted in: First home buyers

Contact us today.


Additional Comments? * :