Saving for a House Deposit

Saving for your first home can appear daunting, considering that most new borrowers need to save approximately 10% of the home valued in order to get into their first home. So for every $100,000 the property is worth you will need to save $10,000.

On an average property price of $300,000 this means you need to save approximately $30,000.

Consider the following methods:

  • Open a high interest savings account and have a portion of your salary automatically transferred into this account each month

  • Work out what your mortgage repayments would be worth and ensure you save the difference between what you pay in rent/board now – and what you will need to pay. For instance a loan of approximately $300,000 would cost around $2,000 in repayments per month. If you are currently paying say $250 per week in rent, you should also be saving $250 per week towards your home. (When you buy your property you will not have the extra funds anyway – start saving now and you will not feel the impact as much when you come to move)

  • Do a budget and stick to it, yes it’s true, until you know where you spend your money you are likely not to know how to save it. Cut back on the coffee you buy in the morning, or bring lunch from home – purchase one less magazine, or item at the supermarket and you can easily save an extra $30-$50 per week.
If you want to know how much you can borrow, our supportive team has the GENUINE expertise, accreditation and experience to assist you with both home loans, car and business finance requirements.
Call Peter Earle today on (07) 3208 3888 or complete the above online enquiry form - we're ready to listen and give you the best possible advice on true rates, loan structure and service.
David Maynard
Source: Australian Loan Company

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