Strategies to Make Your Homeownership Dream a Reality
If you are in the midst of saving a deposit for a house, you might be thinking how can I do this smarter and faster. The fact of the matter is that it can take a while to get the funds together for this considerable investment and it can feel daunting.
There are several strategies you can implement to boost your funds faster to get you to your goal. Speaking to a Mortgage Broker at Allen Finance in Bunbury is a great place to start so you can understand how much you need to get into the home you want.
10 tips and tricks to help you save for your home deposit.
Budget, budget, budget
Without a clear and defined budget, you’re walking around in the dark. Create your own or download a template to help you account for your expenses, bills and other outgoings so that you can see clearly what you are able to save each pay period.
Create a savings goal
As mentioned above, using a budget is important to help you make a clear pathway to your goal. But you need to establish that goal first. Allen Finance Mortgage Brokers have created a calculator that can help you better understand how much you need for your deposit.
Automate your savings!
Instead of leaving it up to manually depositing money into your savings account at every pay cheque, automate the transfers to remove the temptation to spend on other items.
Open a separate savings account
It’s a good idea to open a separate savings account for your deposit, especially if you can find a high-interest option. This means you will be less tempted to take money out of the account for other expenses and you can understand clearly how much you have.
Down-payment assistance programs
The Home Buyers Assistance Account is a grant from the WA Government which reimburses some of the incidental expenses incurred when purchasing a first home in Western Australia. Applicants who meet the eligibility criteria can receive a grant of up to $2,000.
The grant can be used to reimburse some incidental expenses associated with the purchase of your first home, including:
mortgage registration fees
solicitor or conveyancing fees
valuation fees
inspection fees
establishment fees
mortgage insurance premiums
lending institution fees
Allen Finance Mortgage Brokers can help you understand if you are eligible for this grant.
Reduce outstanding debt
Banks and lenders like to see that you have debt that you are capable of paying off. Try and lower other outstanding amounts you owe so that you can focus on saving for your deposit and so the banks can see you are responsible and conscientious of making repayments on loans.
Cutting down expenses
There are several expenses you can evaluate to see where you can trim the fat off how much you spend regularly. It might be doing your weekly grocery shop at two supermarkets instead of one to find cheaper options. You could compare mobile phone and home internet plans to seek better deals or simply choose to make your coffee at home every morning rather than buying it out. You’ll be surprised at how the little things can add up fast.
Side hustles
If you have free time that you are prepared to fill with an additional income generator, then this is an area that can build up your savings quickly. It could be baby-sitting, freelance work or even a shift at your local cafe each week.
Spring clean sale
Most of us have unwanted/ unused items in our households that could be of use to others. Platforms like Depop and Facebook Marketplace are excellent shop windows to sell things you don’t need any more to make some extra cash. One person’s junk is another man’s treasure.
Downgrading a vehicle
If there are two of you saving for your home, it might be an option to either downgrade one of your cars or sell one of them and work out a way to rely on just the one vehicle. This will reduce your registration fees and how much you spend on fuel whilst boosting your savings with the sale amount. This is not an option for everyone, but if it is for you then it is worth considering.
Whilst all of the above tips and tricks are great starters for getting you on the path to achieving your deposit goal, we always recommend speaking to a mortgage broker at Allen Finance first to better understand your options.
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