Finding a way to save enough money for a deposit can become overwhelming. We’ve come up with some tips that may help you on your way to your home loan.
The main thing you will need to do properly in order to save as much money as possible is a budget. Remember to keep it reasonable and allow yourself some money for the little luxuries you enjoy otherwise it will not last. The best way to save money from your pay is to say a certain percentage of it each pay cycle. If you always move 10% away straight away, you will get used to living without it.
Lock your savings away
Lock your savings away rather than have it easily accessible. You can set up saver accounts that you can put access restrictions on like needing to go into the bank and sign for the money to get it out. Not only will having your money harder to access stop you from spending unnecessarily, some of these accounts offer motivation for saving by giving you a higher interest rate if you deposit a certain amount each month and don’t make any withdrawals.
Sell, sell, sell!
No it doesn’t mean you need to sell your car that you love. Do a big spring clean of your house and sell anything you don’t use anymore. You would probably be surprised about some of things you still have in your house that could be worth some decent money. You could end up adding to your savings by quite a bit and you won’t even miss the things you had to sell.
Pick up an extra shift
Adding another shift wherever you can or sign up to work the public holidays, this can boost your savings quicker than you may realise. Any extra shifts are pay you don’t normally need so you can save every dollar you earnt for that day.
Alternatively, if you don’t do shift work or are unable to get any extra hours think outside the box for a way to earn some more money outside of work hours. Think babysitting, offering to garden in your local area, tutoring high school / uni students, graphic design or teaching English to foreigners.
Avoid paying interest
Another thing to consider when applying for a home is that the bank will look at your debts closely. Why not focus on getting rid of debt as well as saving and get yourself in the best position possible to buy your dream house. Not only will your application be more favourable to the banks debt free it will also save you money in the long run. Making minimum repayments means you are paying a substantial amount of interest over time
We would love to meet with you and discuss your personal situation to get you into your home as soon as possible.