Top Tips to Save Money for Your Home Deposit Fast

Posted on Thursday, November 12, 2015 - 16:10

If you’re dreaming of having your perfect house – the place you can call home and where you can spend time with your most beloved ones – you should think about saving money. If you want to increase your deposit and manage to get accepted for a home loan, so you would finally experience the irreplaceable ownership feeling, then keep on reading. The following basic tips should help you make that a reality in your life.

You come first

The thing about money and about how it comes and goes is that the more you have, the more you will get to spend. You might have some plans every month related to how you are going to handle that money, but it always seems to disappear somehow. You might have even given up some vicious habits, like smoking, but you still don’t get to see that money in your pocket, right?

Saving money implies a lot of discipline and restraint. It is a process that needs to be taken step by step, and it involves a thorough plan. What can you start with?

Every month pay yourself first, before paying the bills and the expenses. 10% of your income should be transferred to your savings account. Make sure that this account is not linked to the ATM account you have. Otherwise, you will fall into the temptation of getting into these savings, at the end of the month, when the finances might be lower.

Spending cash

If you are spending money, make sure that it is cash and that you are not paying with your credit card. This way, you will not run into the temptation of spending more than you have initially planned. When using cash, the matter is simple: you can’t spend more than you have.

Keeping control of your personal debts

Having a credit card or a car loan will not only drain your monthly income, but could potentially have anegative impact on your ability to get a home loan.

Before going and buying your first home, make sure that your personal debts are in good shape. If these loans are to large or overdue it will make getting your home loan approved difficult, or it can limit the amount of money you can get for a home. Banks are reserved when it comes to giving money to a person who is in debt. When personal debt like credit cards and personal loans are in a manageable state, you will be able to save up more money, and be able to afford more, a step that will bring you one step closer to owning your own home.

When it comes to mortgages, choosing a fixed rate or a variable one can be quite confusing for many people. Make sure that you know the features of every type of rate. Figure out what a reasonable rate is for you and make sure, once again, that your home loan contains the features you are looking or such as redraw or offset account. 

Using these small tips and making one step at a time can help you save a great amount of money, in time. All you need to have is a lot of will and determination. They will both get you closer to the goal you have established.

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