Checklist for saving for a home deposit

By the resi financial blog team, 07 March 2014

How do I save for a home deposit

How to reach your home deposit goal faster
With interest rates so low at the moment, it’s an attractive time to consider entering, or re-entering the housing market. If this is your goal, one of the most important things to do is get a deposit together. Here are some tips to help you reach your deposit goal more quickly.

Work out your financial situation
Find out what your financial position is by calculating all the savings you have available to put towards a deposit. Once you’ve done this, set up two accounts: an everyday transaction account for your living expenses, and one that is dedicated to saving for your home deposit – preferably a high interest account.

Pay off any outstanding debt
If you have any credit card or personal debt, it means you are allocating some of your income to making interest repayments on these, rather than putting it towards your deposit. And remember, the less debt you have, the more you will be able to borrow.

Start a regular savings plan
Start contributing a set amount – try and make it the same – into a dedicated savings account each month. If you find yourself with spare cash at the end of the month, contribute this into the account as well. This requires a lot of discipline, so stay focused!

Tweak your spending
To reach your goal faster you will need to make some sacrifices, but they don’t have to be drastic. There are plenty of ways you can tweak your spending, such as using public transport instead of taxis, going to the movies on the cheap nights, and shopping at the markets.

When you’re saving for a goal it may feel like all you’re doing is making sacrifices. But just remember what you’re saving for – the thought of owning your own property is a great motivator to keep you on track.

Need more advice? Download our first home buyer guide for free here.

Categories: First home buyer, home loan tips