Saving up for a home loan deposit

Saving up for a home loan deposit

Organising your first home loan can be an overwhelming task. Moving into the market for the first time itself is a daunting experience, but working towards a 20 per cent deposit to apply for a mortgage can seem insurmountable. However, most Australians still have the desire to own their own home at some point in the future, so having some insight into the best way to begin saving for this outcome is the right way to approach the conundrum facing would-be homeowners. 

There are a number of things to ponder when it comes to seeking out a mortgage for your first home. Here are some of the more common things to give consideration to when looking into purchasing your first property. 
First Home Owner Grants

One of the great things about being a first time buyer in Australia is that the state governments offer First Home Owner Grants, which can be lifesaving in the long run when it comes to securing property. As the name suggests, these grants act as an incentive for first home buyers across the nation to pursue real estate by offering funds towards the end goal. 

However, the amount of financial assistance varies from state to state, which means you'll have to get in contact with a local real estate agent to discuss the potential of securing this for your own property goals. One thing that many of the states have in common is that the fund now only applies to the purchase of new homes - or properties that have never been occupied before -  and the construction of a new property by the first time buyer. 

Investigate the options available to you in your state today in order to potentially discover a wonderful boost to your saving process, with assistance from the state government contributing towards your first home success. 

Review your own finances

Before you approach a lender, it's always a good idea to have a decent grasp on your own financial standing. This means taking a step back and objectively reviewing your spending habits in order to figure out just how viable saving up for a home loan deposit is. Tallying your income against your expenses, credit repayments and savings can help you gain an insight into aspects of your life that can be changed for the better to facilitate the saving process. 

Being upfront and honest with yourself about your spending is the only way to whittle it down to a bare bones reflection of your financial standing, allowing you to take the necessary steps in the future to move towards a sustainable saving system. Understandably, saving up to 20 per cent of a property's value while still making regular rental and expense payments can be a challenge - but figuring out where you can cut corners is a great place to start. 

Take care of your credit 

Furthermore, take the time to pay back as much credit as possible. Having a good credit rating can help you to potentially borrow more from a lender towards your property goals, which can aid your overarching real estate goals in the long run. 

Paying back outstanding credit card debts, shutting down unused bank and credit accounts and ensuring everything is in order before approaching a lender can do wonders for your chances of securing a mortgage, while adopting healthy credit behaviour early on is a great way to get into the habit of making repayments - essential for when you manage to secure a mortgage and are expected to pay back a little bit every month. 

These are just some things to consider when looking into taking out your first home loan. Get in contact with a financial expert to discuss your situation further and seek specific insight into your property goals.

Image credit: Ljleavell