Home Loan Deposit Saving tips and other considerations

Buying property can be daunting and saving the deposit is often the greatest hurdle.

Seeking professional advice, together with breaking down the saving process into steps may see you owning your own property sooner than you think.

John Kennedy of Mortgage Choice in Mudgeeraba has these tips for you to considering when looking at how to afford entering the property market:

 

  • Set a limit

 

Set a time limit, so saving for a property deposit doesn’t seem like a lengthy ordeal.  Come in for a chat early so John can give you advice on what deposit you need and start actioning your saving plan.

 

  • Consider the different loan options available

 

There are a wide range of lenders and loan products available to you.  John can provide you with information on these and discuss which one may help you get into your own property sooner.

 Some lenders allow a family member to guarantee your loan which helps with reducing the upfront expenses by providing additional security.  This may be a short term solution to help you into your home sooner.  Once you have paid down your home loan sufficiently the guarantee can be released from the loan and you then continue to support your mortgage yourself.

   

  • New account

 

Look around for a savings account with a high interest rate, different to the one you use daily.  You can think of this as a deposit account, so you are not tempted to use it for everyday expenses.

 

  •  Establish a saving pattern that is achievable

 

Cut down on expenditures where ever possible.  Keep in mind that you will need to show some genuine savings that have been accumulated over a period of at least three months.

 

Having spoken to John prior, you will have an idea on what the approximate repayments may be – understanding that rates may change either up or down while you are saving. 

 If you are able to save the difference between your rent/board and the mortgage repayment you will soon have a picture of what being a mortgage holder is like.

 

  • Be aware of additional purchase costs

 

Remember to factor into your saving plans all the initial, additional costs that come with purchasing a property such as a solicitor, building and pest inspection, removalists, and service connection.

  

  • Be aware that you other loans will affect the amount you can borrow

 

Any other debts you have, (e.g. personal loans) and your credit card/s limit will decrease the amount you can borrow for your property.  Carefully consider your goals and be aware of the implications of other debts.

By making an appointment with John today, you can work out what monthly repayments you can really afford.  Ensure that the property you purchase adds to your happiness and does not become a burden.

 

Call today on 5559 2563, email on john.kennedy@mortgagechoice.com.au or drop in for a chat we are only 5 minutes from Robina Town Centre in Mudgeeraba.

Posted in: First home buyers

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