Tips On Saving For Your Home Loan Deposit

Saving for a home loan deposit is serious stuff, but it needn’t be impossible.  With a disciplined and intelligent approach, you can be successful.

Start by setting a savings goal. Well, you ask, how much deposit do I need for a home loan?

The answer, of course, is that it will depend - but as a general rule it will be at least 5 per cent of the purchase price of the property.

Use a how much can I borrow calculator to get an idea of what you will be able to afford - base your savings goal on the deposit you’d need for a home in this price range.

Next, look at your current income and expenses and work out how much you can start to put aside towards your deposit.

Be ambitious - now is the time to sacrifice. Set yourself a challenging timeframe within which to meet your target. Finding ways to live more frugally can even be fun, believe it or not!

You may want to consider taking advantage of a high interest savings account or a term deposit to let the savings you’ve already made work for you.

Once you’ve met your goal, don’t forget to pat yourself on the back - saving for a home loan deposit is quite an achievement.

To get more detailed information on your situation, talk to a Loan Market mortgage broker today.