One of the biggest steps in your home buying journey is saving up for the deposit. But as daunting as it may sound, you can still achieve your home buying goals with the right strategy, tools, and motivation.
Here are some ways to help you save for your home deposit:
Determine your borrowing capacity
Banks can require up to a 20% deposit, but there are various concessions, grants and incentives that you may be eligible for. For example, if you’re buying a property for the first time, you may qualify for the First Home Owner Grant (FHOG) and stamp duty concession.
It’s advisable that you engage with a mortgage broker who can determine your borrowing capacity, which will help you to determine how much you need to save for the deposit.
By knowing how much you need to save, you’ll be able to take concrete steps to achieve your home-buying goals.
Sort out your finances
The last thing you’d want to do when saving is to borrow more money. It’s always wise to sort out your finances first, including sorting out any outstanding debts and loans. Remember, your credit scoring matters when it comes to your borrowing capacity for mortgage loans.
Set yourself a budget and savings scheme
Once you know how much you need to save, you can begin to set a budget that will help you to save the required amount. It’s important to track your spending habits and identify areas of improvement. A financial adviser can help you to organise this if you require guidance, assistance or advice.
You may even like to set yourself a visual tracker where you can see exactly how far away you are from saving your goal amount. This can help to spark motivation and keep you on track to achieving your ultimate goal – a brand new home!
Once you’re ready to buy a home, check out our range of affordable house and land packages here. You can easily filter the choices by price to find one to suit your budget.