How to get that deposit together

October 13, 2017
Leonard Marquart

  1. Budget, budget budget…  Determine what your monthly income and expenses are and write it all down. Regularly conduct a budget health-check, see where you might be able to make savings. Set your savings plan and stick to it.

  2. Manage your credit card debt. Credit Card debt can take up a significant amount of money each month. If you have a large or multiple debts you may consider debt consolidation to manage the outstanding amount. You can also try keeping just one credit card, keep the limit low, and pay it off each month.

  3. Automate your savings online – set a transfer amount for each week to to your dedicated savings account. Also look for an online saver account that pays bonus interest.

  4. Plan ahead – using a calculator such as this one from Mortgage Choice https://www.mortgagechoice.com.au/home-loans/calculators/achieve-savings-target-calculator.aspx you can work out how much you need to set aside to reach your target – a bit of reverse planning to speed up the process.

  5. Be tough about what you spend on food and drink. Are there things you can go without until you reach your goal?

  6. Sell things you no longer use on Gumtree or eBay. Put all sale proceeds into your savings account.

  7. Be realistic about what you can save and when. If you have a 20% deposit you will avoid Lender’s Mortgage Insurance – click here for an explanation https://www.mortgagechoice.com.au/home-loans/first-home-buyers/lenders-mortgage-insurance.aspx. But what happens if you only have 5%? Potentially, if you buy now, pay LMI (it can mostly be capitalised on top of your loan – on which you will pay interest) and your property appreciates in value then you might be in front. I can help you work out the best option for your situation.

  8. Talk to your mortgage broker regularly. I am here to help you achieve your goals; let me know how your savings plan is going and i’ll keep you updated on options for you.

Contact Leonard Marquart for all your home loan needs on 0420 544 268.

 

Posted in: First home buyers

Contact us today.


Additional Comments? * :