Making the decision to buy your first home is an exciting one. However, saving for a home deposit can seem like a monstrous task. Mortgage experts state that your should be looking to save 10-20%, especially if you are looking to avoid paying additional lender's mortgage insurance. With that being said, it can certainly be done.
Managing Director of Aurora Estate Agents, said "saving up for a deposit will require good budgeting and knowing where to shop around for a loan and also your dream home!"
"Obviously, the task is much harder for first home buyers, but it can be done.”
So here are our top 5 tips on how to save for a deposit on your first home.
Budget
Looking at your expenses and savings, and drawing up a budget it a great place to start. By knowing exactly where your money is going can help you decide where you need to be saving and how you can cut some expenses.
Clearing Debt
By clearing any debts as soon as possible, no longer will you have to worry about paying interest, and you can have a better understanding of your living expenses. Clearing debt will mean your borrowing capacity will be higher with the banks.
Direct Debit for Saving
Open a separate bank account for the sole purpose of saving for a deposit and see if you can have part of your wages sent towards this bank account directly from your employer. This way you can save without even thinking about it. As soon as that money is stored away in a safer place, you may not even think about spending it.
Shop around for Savings Accounts
Make sure you have a savings account thats right for you, and for its intended purpose. Try finding a high interest saving account, or one that offers a bonus interest that rewards you for your savings.
Seek Advice
It never hurts doing your research and seeking professional advice, especially for something as important as your first home deposit. Speaking to a mortgage broker can assist you in setting out a solid plan, and sticking to it.
About Aurora Estate Agents
Aurora Estate Agents are a new breed of real estate professionals which are highly focused on their core values: integrity, accountability, transparency, client focussed and process driven. Aurora Estate Agents’ dynamic team is a collaboration of effective marketers, residential sales agents and residential leasing consultants.
South East Melbourne, which includes Berwick, Narre Warren, Beaconsfield, Clyde North, and Cranbourne is the country’s property boom hotspot. Aurora Estate Agents is perfectly positioned with a broad spectrum of property expertise to provide the best advice and skills for homeowners, investors and developers to ensure they continue to maximise growth and take advantage of existing market conditions.
Article by Andrew Nguyen
