Tips on Saving for a Home Deposit
If you’re serious about buying a home, you’ve probably done your homework on home loans and deposits. Once your home loan is set up, it’s simply a matter of making your payments on time. But saving up for that first deposit can be tricky.
There are home loan packages that require no deposit. Mortgage House has a few such options available to first home buyers. If you’re interested, click here to speak to us!
But if you’re not keen on that option, your initial deposit will likely be a five-figure sum. Here are some practical tips for saving up so you can get the ball rolling as soon as possible!
Compromise on luxuries
Check your monthly subscriptions and payments. Are you paying for things you can afford to say goodbye to for a while?
Check your bank balance and take a tally of how much you spend on entertainment and other regular services a month. Ask yourself: Is this more important than getting a deposit? Ultimately it’s a personal choice, but it’s worth examining.
Sell on eBay, Gumtree, etc.
You can sell things you no longer need quite easily online. In addition to making a bit of money, you also clear space for your future move into the new home!
Getting ready to buy a home is as good a time as any to clear out all your unwanted possessions, making money while also saving future expenses on moving costs.
Get an extra job
You can either get a part-time job at a physical location, or online. The great thing about finding work online is that you can do it from home and choose your own times. Freelancers such as graphic designers, copywriters and website coders make good money taking on projects from home.
Depending on how serious you are, it might even be worth investing in a new skill-set. There are free online courses for graphic design, HTML coding, writing and more.
Save a predetermined % of each paycheck
The oldest trick in the book – actually saving. Entire books have been written on saving money, covering topics such as habit management, psychology and more.
It can be an adjustment to spend less money on a weekly basis. Less coffees, less treats, more train rides, etc.
Ultimately your budget and priorities are up to you, but making a commitment to save and put aside a particular % of your paycheck is a great starting point.
At Mortgage House, we’re no strangers to the homeowner’s journey. It’s a long (but rewarding) one.
But don’t worry, we can help with that.
If you’re thinking of buying a home, you can contact us for advice about the best options for you when it comes to your mortgage. The cost of your mortgage can drastically affect your financial planning, so it pays to speak to the experts about it.