Budgeting tips for first home buyers

By the resi financial blog team, 20 August 2013

How to budget for your first home deposit

Saving up for your first home? How far away are you from reaching your goal? Setting aside money regularly for a home deposit can seem like it takes forever, but with a few handy budgeting tips you will be on track in no time!

Aside from the various first home buyer grants in Australia, here's are a few other points to consider:

Set an amount

In order to save up for a deposit for your first home, you must first set yourself a goal of how much you want to save. This means determining how much you can afford to borrow, and how much is available to you.

In most areas, your deposit will need to equate to a minimum of ten per cent of the home's purchase price. For example, if you are buying a house for $350,000, then you will need a $35,000 deposit.

Set a time limit

From here, you can set yourself a strict time limit to give yourself something to work towards. Saving takes a lot of motivation and willpower, especially when it is for something as substantial as a deposit for a home.

Reduce your spending

This goes without saying, but in order to accumulate a little nest egg for your future property purchase, you must be tight with those purse strings of yours! Cut down your unnecessary spending, and try to live to a weekly budget.

Saving money does not mean that you have to completely stop doing things that you enjoy, it just means being smarter and wiser about how you do them.

Remember, the more that you save towards a deposit for a home, the less you will have to borrow. And the less that you have to borrow will mean you are keeping interest payments to a minimum.

If you are buying your first home and looking to secure the best interest rate, then contact one of the professionals at resi today.

Categories: Home Loans