Regardless of whether you’re interested in taking out low doc home loans or bad credit mortgages, it’s still necessary to save up an initial deposit for your down payment. This can be difficult, especially if this is the first time you’ve undertaking such a large expense in your life.
Adjusting yourself to the saving mentality can take some time, but it will be well worth it when you’re living inside your own property in the future.
Here are some tips to help you get started on your way to saving a home loan deposit.
Save 10 per cent of your paycheck
The easiest way to start saving is to simply cordon off a section of your pay each week and put it directly into another account. Making this an untouchable pool of money that you slowly but surely keep adding to will help you yield the best results possible.
Eventually, this saving habit will become second nature and you’ll have reached your deposit goals before you know it. Not only this, but after reaching your deposit goal, keeping this saving tactic up will allow you to keep saving towards other goals such as well-deserved holidays, vehicles and other distant goals.
Weigh up wants versus needs
Sacrifices will need to be made during the saving period. Therefore, it will come down to deciding whether the purchases you make are a want or a need. For example, buying a coffee every morning may be a delicious way to start the day, but it can end up being an expensive habit.
Cutting back on superfluous things like coffee or digital television subscriptions during your saving period will help you reach your goal faster. After all, every little bit counts.