Buying your first home is the great Australian dream, yet it exactly feels like a dream for many. But no matter where you are in Adelaide, purchasing a home to live in is not impossible.
If you are thinking about getting into the property market, you will typically need a mortgage and to do that; you will need an initial deposit.
How much deposit will you need?
Typically, it is advisable to save a deposit of 20 per cent of the property’s purchase price. However, you can start by saving at least 5% to 10% of the purchase price as a deposit as it meets most lender’s requirements. On top of that, you need a little more to cover additional expenses like conveyancing costs and stamp duty.
Here are five golden tips to help turn your dream into reality.
Analyse Your Current Spending
First, you should look at your current spending habits and financial situation. Gather as much information as you can on what you are currently spending.
Get On Top Of Your Debts
If you are dealing with multiple debts, you may also find it helpful to consolidate them into one, depending on your situation. It could potentially support you to make reduced repayments.
Set The Budget (And Stick To It)
Analyse your weekly spending and decide how much you can start saving. Ensure your budget is achievable. Cutting down on the unnecessary expenses help you make some serious savings.
Initially, set small savings targets for yourself and build your habits from there. For instance, you can set up a separate savings account.
If you have a smaller deposit, your lender or bank may charge you with Low Deposit Premium or Lender’s Mortgage Insurance to protect themselves. Hence, the more you save for a deposit, less you will need to borrow.
As mentioned earlier, setting up a separate savings account not just maximize your interest earnings, also reduce your temptation to spend. You may also consider a term deposit account. It will lock your money for a limited period while earning you some interest.
Look Into SA First Home Owner Grant
As a first home buyer in Adelaide, you may be eligible for a grant of up to $15,000 on the construction or purchase of a new residential home. The good news is you can use this amount towards your deposit.
Get in touch with Adelaide First Home Buyer Specialist and learn more about eligibility and other factors.
To Sum Up
By having a savings plan and set goals in place, you could be on your way to build a house deposit and becoming a homeowner. Eventually, when you apply for a home loan, make sure you do your analysis to find the product that offers excellent value – performing well across both features and price.
Connect over a no-obligation phone chat or fill an inquiry form to instantly connect with a Home Lending Specialist to help you educate on various available loan products and discover strategies to save for a house deposit.