Are you one of the thousands of Australians trying to save for a house deposit, but feel like you’re getting nowhere? It’s time to think outside of the box.
While house prices have skyrocketed right around the nation, wages haven’t quite hit the same levels of growth. Even at the lowest quartile, the average sales price in Brisbane is still $850, 000 – which means you’d need to save $85, 000 for a 10% deposit, or a whopping $170, 000 for the ideal 20% deposit to avoid paying Lenders Mortgage Insurance.
As such, it’s easy to understand why many budding first home buyers often feel like trying to save for a house deposit is an uphill battle, especially while still paying for the basics like rent, food and fuel. Although there’s thousands of articles out there already, what are some not as well known ways to save for a house deposit
How To Supercharge Your House Deposit
In order to save meticulously for a home deposit, the reality is that not everybody is in the position to move back in with their parents. While sacrifices do generally need to be made when it comes to learning how to save for a house deposit, the good news is that there are plenty of other tactics to deploy when it comes to tweaking your lifestyle in order to achieve your financial goals.
Consider A Guarantor – What if we told you that there was a way to purchase your first home with as little as 5% of a house deposit? If your situation allows it, consider opting for a guarantor loan. The major point of difference with this type of mortgage is that you’re co-signing with a selected guarantor – commonly a parent or guardian – and ultimately act as your financial backer in the event that you default.
Check For Funding – Before you start the gruelling process of trying to save for a house, be sure to check for any government initiatives that could potentially fast track the process. New and rehashed schemes designed to help first home buyers were announced in the recent Federal Budget, with a handful including the First Home Loan Deposit Scheme, Family Home Guarantee, Regional Home Guarantee and the First Home Super Saver Scheme.
Cut Down Your Debt – Public enemy number one of any attempt at savings is any existing debt already tied to your name. Although not a viable path for everyone, especially for people with HECS debts, banish any credit cards and pay down any existing “Buy Now, Pay Later” purchases. When that’s finalised, eliminate any opportunities for liabilities by cancelling these types of accounts, as they can limit your borrowing capacity when applying for a home loan.
Automate Your Savings – In order to get approved for a home loan, all banks want to see a solid savings history. As such, be realistic with your saving goals, and start small if you have to – even $50 a week is better than nothing. Open an account that you can’t touch or transfer funds out of, such as a term deposit. Set goals with how much you want to save by, be accountable for the results, and watch your nest egg grow.
Get A Side Hustle – While cutting down on your living expenses sometimes doesn’t leave much wriggle room for potential savings, increasing your income is an alternative that doesn’t necessarily equate to sucking all the fun out of your lifestyle. If you have a creative pursuit that can be turned into a side hustle – go for it. Even a few shifts a week as an Uber driver can go a long way, so try and think outside of the box and utilise your talents.
For those exploring their options for their first property purchase and which initiatives could possibly help them do so, it’s important to get the right advice instead of making big decisions based on guesswork.
As of September 2021, mortgage brokers wrote 67% of all residential home loans in Australia – the highest number ever recorded. What’s more is that 90% of these customers reported that they were happy with the services provided to them – but where do you find a decent mortgage broker?
Partnering With Home Loan Professionals
Navigating the complex world of home loans has long been regarded as stressful, frustrating and time consuming – but if you can find the right advice on sourcing how mortgages work, then the good news is that it doesn’t have to be.
Since their inception in 2012, the team at Madd Loans have worked tirelessly in providing over 2,000 Queenslanders with finance options to help turn their dreams into reality. With the entire brand being built on referrals, owner George Samios takes great pride in making the loan process both fun, educational and stress free – and he has a swag of awards to prove it.
If thinking about your financial future strikes a chord with you, then it might be time to speak to a professional. Whether you’re chasing mortgage solutions or a financial fairy godmother, the team at Madd work together as a collective to turn your goals into reality.