There’s a lot to think about when looking to buy a new home.
Before you start scrolling online for open home listings, spend some time planning how you will save your house deposit.
To help get you started, we’ve pulled together five deposit-saving tips.
1. Work out how much you need
Your first task is to find out how much you need to save for a house deposit. While this will usually be about 10 - 20% of the total property value, factors such as your credit score, government programs, income and whether you require a guarantor could influence your borrowing power.
You can use our home loan borrowing power calculator to help get you started.
2. Find out about the government grants on offer
If you’re a first home buyer and looking to get into your new home sooner, you could be eligible for one of the government grants on offer.
The Federal Government is currently offering the First Home Guarantee.
The First Home Owner Grant is another great initiative that can be used to buy or build a new home. The New South Wales and Queensland Government’s both have website’s you can access for more information.
Each includes specific eligibility criteria, so check them out to see if one could be right for you.
3. Take note of your spending habits
As you shift your focus to saving, make sure your spending habits are in check.
By sacrificing (some) spending for saving, you will be surprised at the extra funds you will accrue over time. Things like buying a coffee, going out for dinner and purchasing snacks can add up to hundreds of dollars throughout the month.
Small changes can make a big difference in the long run and will mean you’re able to get into your new home sooner.
4. Create a budget
By setting realistic goals, you’ll be well-placed to reach your house deposit savings target. Make sure you put a budget in place and take the time to regularly check in so you can keep yourself accountable.
One popular budget is the 50/30/20 method. Our budget planner calculator can help you put your budget together.
5. It’s time to save
Now it’s time to knuckle down and save. Contributing to your savings also gives lenders greater confidence when assessing your capacity to repay a loan.
If buying a house is on the horizon for you, our mobile lenders can help you to get started.
Banking and Credit products issued by Police & Nurses Limited (BCU Bank) ABN 69 087 651 876 AFSL/Australian Credit Licence 240701. Any advice does not take into account your objectives, financial situation or needs. Read the relevant Product Terms and Condition, before acquiring this product in considering and deciding whether it is right for you.