First Home Buyers Need To Track Spending

The first step for getting on the property ladder is to raise a deposit, which may mean cutting back on other luxuries.

Usually, the minimum deposit first home buyers will need is five per cent, but as a general rule, the more money that can be raised the better.

With the aid of a mortgage calculator, would-be buyers can weigh up how much money they can put towards a home loan and how much more they need to raise before making an application.

Although cutting back may seem tough, it will help potential home buyers get on the property ladder much faster.

The best way to do this is to track spending and set a time aside - preferably once a fortnight or month - to see where money is going.

This helps first home buyers see in black and white where they can be more frugal - this might mean cancelling a gym membership or magazine subscription, but the sacrifice will be worth it in the end.

Even though these changes may seem small, when considered on a month by month basis, they can amount to some pretty major savings that can be put towards a house deposit.