First Home Buyers
Saving Your Deposit
Surging house prices in recent years have made the size of the deposit required for most home buyers substantially larger and just that much harder to get together.
As a result buyers need to be shrewder when it comes to their saving and banking habits. There are two ways to save your deposit faster: save more or spend less.
It’s that simple.
Here are some ideas to get you started on the path of home ownership:
Work out your budget: The hardest thing about saving is doing it systematically.
You don’t mind putting your spare change in a jar each week but it’s very hard to motivate yourself to save for a deposit because it usually means giving up things that you like. The key is to budget sensibly by putting together a realistic savings plan that doesn’t compromise your family’s lifestyle too much.
Estimate your regular expenses: such as transport, groceries, lunches, childcare.
Don’t forget any debts, including credit cards, car loan or anything else that you have to make repayments on. The hardest part is identifying and cutting out unnecessary expenses. Work out what luxuries you enjoy that you can reasonably afford to give up.
Manage your debts: There is no doubting the convenience of credit cards when you are running a little short. They’re handy to use and accepted almost everywhere. But do you really need one? If so, how many are you using? And what about personal loans, car loans and interest-free purchases? Remember, you can’t save effectively if you are paying off debts. So cut down on those credit cards, consolidate your debts and do everything you can to become debt free.
Sort out your banking: It’s a commonly known, though rarely considered fact that most banks charge fees on most of their accounts. The most popular form of saving for first home buyers just starting out is to open up an at-call deposit account. These are available from most traditional lenders, such as banks, building societies and credit unions. The advantage of at-call accounts is that your money is available whenever you want it. Avoid putting your money away in just any bank account.
It’s great to choose an account that pays good interest, but there are other factors you should consider, such as account-keeping fees, transaction costs, when interest is
Make an appointment with Mrs. Mortgage today and get started on the road to your first home!
How many credit cards should you have?
Look through your wallet. How many credit cards do you count?
By following these simple rules you should keep your credit rating good, thereby achieving the best chance possible of qualifying for a home loan at affordable rates.
If you are still not sure, or think that you will qualify for a home loan today, give Mrs. Mortgage a call and get all your questions answered.