How To Save For A Home Loan Deposit

February 16, 2017
Owen McDonald

 

 

Saving a deposit is the first and most important step for a first home buyer.

How much deposit do you need?

Generally, you should aim to save at least 5% of the price of the property you want to purchase. This amount is known as ‘your contribution’ towards the purchase of your home. 

How do you save?

1)  Set a realistic monthly budget that you can genuinely live with

2)  Cut back on on extras, like movies, takeaway meals and those latest gizmos that you might not really need

3)  When you go grocery shopping write a list and purchase only those items on your list

4)  Take a packed lunch and snacks to work - you will be amazed how much you save each week

5)  Ask yourself if you really need that second (or third!) coffee of the day

6)  Set up a separate savings account for your deposit so you aren't tempted to spend your hard earned gains

7)  Pay off any high interest Credit Card debt, so that the interest is not eating into your savings

8)  Refrain from new Personal/Car loans - this increases your borrowing capacity

At the end of each month review your spending habits. Yes - actually look at your bank statements! You will very quickly notice areas where you have made significant gain and those (like the coffees) which still require improvement.

Come in for a chat!

Regardless of your current situation, your home loan expert Owen McDonald from Mortgage Choice South Brisbane will help you evaluate your options and guide you on your savings journey towards becoming a home owner.

Posted in: First home buyers

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