Whether you’re just getting started saving for your first house, or if you’ve been doing it for a while, our six suggestions can help you get on the property ladder fast!
1. Make a budget plan.
It’s a good idea if you’ve never used a budget before. It’s an easy method to gain an overall picture of your finances and reclaim financial control.
You should track your spending to figure out where you can cut back and save money for your first home deposit. The more information you provide, especially with regard to expenses, the easier it will be to spot areas where you might reduce costs and find extra savings for a first-home deposit.
2. Create a savings goal.
When you have a clear goal in mind, it is usually less difficult to save money. Lenders like borrowers to have a 20% deposit when purchasing a property for $500,000 or more. In other words, if you want to buy a home for $500,000, you should aim for savings of around $100,000.
3. Add any unexpected gains.
Add any unanticipated windfalls, such as a tax refund, work-related bonuses, or any other cash gifts to your savings pool. These should be considered forced savings and placed in your pot right away. They can add up over time!
4. Invest your money now.
Don’t just save money; make it work for you. Shop around for a savings account, or maybe put part of your funds into a term deposit to earn a higher rate and keep yourself from being tempted to spend them.
5. Put your money on auto-pilot.
Setting up an automatic payment to a chosen savings account will ensure that your money is saved before you are tempted to spend it. Keeping your hidden savings makes it simpler to save money.
6. Reduce your debt levels.
Lenders will want to know about any outstanding loans you have, as well as your credit card restrictions, not just the outstanding amount. If you’re seeking advice on how to pay off debt faster or consolidate your debts, or simply need help with how to reach your financial goals sooner, our financial advisors can help.