Your guide to save for a house deposit

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Getting ready to buy a home starts with saving for the deposit. It might seem challenging, but with a solid strategy, you can make it happen.

Here are several things to consider to get you started and on track for home ownership sooner than you think.

Check your current financial situation

Ok, this one seems a little obvious, but let’s start simple. Understanding your financial situation will get you in a good place to start setting your budget. Make sure to take a look at:

  • What you earn: Your paychecks or other income.
  • What you spend: Bills, groceries, fun stuff—where does your money go each month?
  • Your debts: Loans or credit cards you’re paying off.
  • What you own: Savings or things you could sell if needed.

Understanding these parts of your money helps you see how much you can save for your new house every month.

How much can you borrow?

Having an idea of the amount you can borrow – which is determined by your current financial situation – can help you figure out how much you’ll need to save. But remember, there are other costs involved in buying a house, like stamp duty and conveyancing fees.

To figure out the deposit you need to save, consider:

  • The price of the house you want,
  • Plus any extra fees and charges,
  • Minus the amount you can borrow.

If you’re unsure about these numbers, we are here to help. As your mortgage broker, we can work with you to understand how much you can afford and help you set a goal for your savings.

Set your savings target

Here’s what you’re aiming for:

20% of the home’s price Extra money for other house-buying costs like lawyer fees, checks on the house, taxes, moving, and insurance.

Even though some places might let you buy with just a 5% deposit, saving more is better. It means borrowing less and showing banks you’re great with money, which might help you get your loan approved.

Government help? Yes, please!

If you’re buying your first home, you may qualify for the following:

These benefits can really help boost your savings by providing financial assistance and reducing costs when you’re buying your first home.

Government programs may offer grants, discounts, and tax breaks, which means you have more cash upfront and pay less over time.

How long will you be saving for?

If you know how much you can save each month and how much you’re able to borrow, you can start to estimate how long it’ll take to save for your deposit.

Check out this handy savings goal calculator to find out:

  • How long it will take to reach your savings goals
  • What steps you need to take to put your plan into action

When you’re getting close to your goals, it’s a good time to seek pre-approval. This means a lender has preliminarily agreed to give you finance for buying a home, giving you a clear idea of what you can afford before you make the final decision.

Start saving!

With your plan ready, it’s time to get saving. Making a budget helps you find extra savings spots. Automatic transfers to your savings make sure you keep saving regularly. If buying a house isn’t happening right away, think about investing to grow your savings.

Saving for a deposit is a big goal, but you can definitely do it with a bit of planning and help. As your mortgage broker, let us guide you on this exciting journey to owning your home. Get in touch today.

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Kristin Harris
Kristin Harris
22:36 10 Feb 21
Ryan made my refinance a breeze. He kept me completely up to date every step of the way. He was extremely responsive and very diligent. Ryan has great knowledge about all mortgage needs and I would highly recommend Ryan... for any mortgage or refinance needs.read more
Rabie Abou Fakher
Rabie Abou Fakher
09:16 07 Feb 21
If you are looking for an honest down to earth broker then you have found the one. Ryan has assisted us through our home loan application for the best part of 10 months. Ryan has explained things in an easy to... understand language, prompt reply to communication, genuine cares about his clients and most important of all caters to your individual needs. Finally thank you again for helping us and I will certainly deal with you again for future loans.read more
Elizabeth Lewis
Elizabeth Lewis
08:20 27 Jan 21
Ryan has been an excellent broker during the purchase of my first home. Always available for advice when needed, great and fast communication. His liaison between the bank and myself has been great. Thanks for all the... help Ryan.read more
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06:11 14 Jan 21
Ryan His the best ever the best word to describe him when he do his job he do for him self not for the client he working hard he tried to make clients happy specially family like my family he did big miracle for us... after many broker advised we can’t get the home loan only Ryan he did for us I recommend him for every oneread more
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Tony Bejjani
05:46 14 Jan 21
Ive dealt with several brokers and never imagined an experience so pleasant and stress free . We got a fleet for our business with beyond exceptional service and superb rates . Ryan was the most knowledgeable person i... have dealt with and i cant recommend the team at Bspoke finance enough. We just moved into our dream home thanks to his amazing work . Thank-you from both tony and beam . Your magicread more
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