If you are the one of many wanting to achieve home ownership but are unsure of how much you will need and unsure how you will achieve saving a sufficient deposit there are a number of things you are able to do to help yourself achieve the desired deposit amount. It is important that you talk to a mortgage broker in the early stages as they will be able to work out your options and provide you with a rundown of how much funds you will need to make a purchase in your price range.
You might find that saving up all your money and doing long days at work and possibly working two part time jobs is not terribly exciting with no short term reward, but the more money you are able to save up and put into the deal means less you’ll have to borrow in the long run.
Ultimately you need to work out your goal, set it in stone and work backwards. After talking to a mortgage broker you will know how much exactly you will need to save to achieve your desired purchase. Once you have this worked out, it is time to calculate in how many years/weeks you wish to achieve this goal. This is worked out by the total amount needed divide that by how many weeks and you will then know what is manageable. It won’t hurt if you are able to put away more each week, there will come a time where the goal is so close you will be able to taste it!
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Find below some tips on how to achieve the greater picture:
Cut back on the extras
The most convenient way to see where you can cut back is by setting out a budget. To do this effectively you will need to note down your essential costs such as rent, bills and food, and subtract this amount from your income. What is left over is what you could potentially save for your deposit. If you find that your budget will be too tight to reach your desired target try for something more realistic, a good idea is to set smaller savings goals along the way and reward yourself when you achieve them.
Move back into the family home
While it may not be too exciting the thought of moving back in with mum and dad, many young people choose to move back into the family home while they are saving for their first house. Rent is likely to be one of your biggest expenses most probably on par with a mortgage repayment so if you can cut this right down until you are ready for your own home mortgage, you could potentially increase your savings very quickly.
Set aside money into a savings account
Once you know how much you can save it is best to make the most of your money and have it work for you. If you don’t transfer it from your everyday transaction account to a delegated savings account, you might be tempted to use the cash. You will also earn less interest than you would by transferring your savings to a high-interest savings account.
Buying a home is a big step and it’s easy to be daunted by the large sums of money involved. With careful budgeting, saving money towards your own home is made much easier.
You might have the opportunity to take up some extra shifts or do some overtime during your working week. With the extra money earned you could put that amount into your savings account which would help it grow at a more rapid rate.
By talking to an experienced mortgage broker you will soon know your budget and how much you will need to save to achieve a sufficient sized deposit. If you have a question regarding anything spoken about in this article please don’t hesitate to get in touch with your mortgage broker Gerry today and he will be able to assist with answering any questions you may have.