Getting home ownership is an exciting and life-changing experience. It all starts when you have enough house deposit. Many people are unaware of how to save for a house deposit fast and because of this, they are unable to buy a home. In today’s blog, we’ll discuss methods to help you save for a house deposit.
7 Tips on Saving for a House Deposit
The purchase price of the property will help you know how much deposit you need and how much you need to save. Usually, lenders need you to have 20% of the purchase price of the property. It means you are allowed to borrow 80% of the purchase price of the property. Take a look at the following tips to save for a house deposit:
- Check your spending patterns
When you have to save a huge amount like a house deposit, it is essential to start tracking your spending patterns so you can work out areas where you can cut extra costs. You may have automatic payments for subscriptions you don’t even realise that you have any. Once you know where all your money is going, you can better save.
- Make a budget plan
The key tosaving for a house deposit is by doing everything systematically. You need to determine how much you need to spend every month and you need to avoid buying those things, which are not important. You need to make a budget plan that doesn’t compromise your lifestyle.
- Maximise your savings
Make sure you put aside a small portion of your salary into savings until you achieve your house deposit goal. In the long term, it will be worthwhile even if you have to sacrifice a few restaurant meals throughout the month or pack your lunch when you run out of money near the end of your pay period.
- Pay your current debts
Many people ask ‘how to save for a deposit on a house’ and most of the time, it is suggested to pay your current debts, which is not an easy saving tip, but paying your current debts makes sense. As a result, it can increase your borrowing power and free up cash to use for mortgage payments.
- Monetise your free time
Want to know, how to save a deposit for a house?It could be a smart idea to hunt for additional work if you believe your funds are already fully taxed. Find a strategy to make money in your leisure time and use your skills to your advantage.
- Take advantage of schemes for first-home buyers
The First Home Owner Grant is a type of assistance that several governments and territories provide to qualified first-time homebuyers. It is a one-time payment that is typically made to your home lender at the time of settlement and is applied immediately to your house loan.
- Use public transport
You can save money and reduce your carbon footprint by using public transportation instead of driving to work or taking the bus to the bar. If you’re serious, you might even want to think about selling the automobile and keeping the proceeds.
Can You Use Your Super for a House Deposit?
Yes, if you are buying your first home and have contributed additional funds to your superannuation account, there is a method to access your super to purchase a house or another type of home, known as the first home super saver (FHSS) scheme. You can use your super as a house deposit if:
- You must have reached the age of 18 or older.
- you’ve never bought a house in Australia before, including an investment property
- you haven’t used your super before for a first home deposit
- you are likely to live in the house you purchase for at least 6 months of the first 12 months you buy it.
The blog shares 7 tips to save for a house deposit. Apart from this, you also know that eligible candidates can use their super as a house deposit. Moreover, for more information on house deposits and other government schemes for first-home buyers, you can get in touch with Home Star Homeloans.