A 20% deposit on a mortgage is often a sum in the hundreds of thousands and can be a daunting amount of money to try and save up. Many first home buyers have never gotten their savings anywhere close to the 6-figure range and have a lot of difficulty saving up for a deposit as a result. If you’re one of the many struggling to save up for a home loan deposit, there are a number of tried and true tips that will help you get there fast.
Set a Budget and Follow It
The first and arguably most important method to maximise your savings is to create a budget, the second is to actually stick to it. Even if you already believe that you are a frugal spender, taking a careful look at all your monthly expenses can often reveal things you would rather sacrifice over becoming a homeowner.
Move Back Home
A good way to significantly reduce your expenses is to move back in with mum and dad. While not the most appealing option for many, the ability to cut back or at least share your expenses will rapidly increase your monthly savings. This move is only temporary until you have enough to afford the deposit and move into your new home.
Walk Before You Drive
Wherever possible it’s worthwhile walking, running or just riding a bike to work, the shops or any other place you would normally drive or take public transport to. Not only will this cut hundreds off your monthly expenses but is also a great way to stay fit.
These are all solid methods that will lower your expenses and help you save more each month quickly. If you need help saving up for a deposit our brokers can help you find the right home loan to suit your financial needs.
If you would like to learn more about the deposit required for a mortgage, please get in touch with us today.