Start Saving for a Deposit on Your First Home
Most lenders require a deposit of at least 10-20% of the total loan amount. So, it’s important to start saving for your deposit on your first home, sooner, rather than later. Below are some great ideas to get you going.
Begin Today
There is no time like the present to start stashing your cash for a deposit. The longer you put it off, the harder it can be to develop good savings habits. Unless you win the lottery, inherit a fortune or receive some other windfall, chances are you will need to make sacrifices to save your deposit. This may mean finding cheaper rent, moving back in with parents and making some tough choices about how you spend your disposable income. The key is to begin to save!
Start with a Budget
Make an honest appraisal of your living expenses and decide where you can cut back on some costs. Once you know how much you can actually save, set up a direct deposit from your pay into a separate savings account with no card access. That way you won’t be tempted to take any money out using ATM withdrawals or EFTPOS purchases. It may not be easy, but it will be satisfying to watch your nest egg grow, knowing your homemade lunches and big nights in will eventually reap financial rewards.
Remember the Extra Costs
In addition to saving a deposit, you’ll also need to have enough money on hand to pay for stamp duty, conveyancing or legal fees associated with the purchase of the property, pest inspections, council and water rates, as well as moving costs.
If you have any questions, or would like to speak with one of our qualified mortgage brokers about your first home purchase, call or email us today.