When do you start working on a mortgage deposit?

Whether you’re preparing for a regular loan to buy a new piece of investment property or you’re in need of a bad credit mortgage to get up on the property ladder, getting yourself ready financially can be a long process. With that in mind, when is the best time to start planning your finances for a mortgage?

Working out your finances

When you decide to start looking at loan options, the first thing you should do is calculate the amount you can borrow, and the size of your deposit. Many lenders and government websites have their own mortgage calculators, and MoneySmart has a lot of good savings tips.

You’ll need to determine what fees and charges you’re likely to face, the price of the home you want, and how much you think you can afford to borrow. Unsure of how much you can borrow? Feel free to talk to a broker for more advice.

Get in early

No matter what situation you’re in, some of the best advice is generally to save early. While home ownership could seem like a distant dream, the reality is probably closer than you think. With products like a Redrock’s low documentation loan, it’s easier than ever to enter the property market and settle in a home or get that investment portfolio up and running.

However, you’re still going to need a deposit – this is something you should keep in mind as soon as you start earning a steady income. By putting aside as little at 10 per cent of your income each week or month, you’re getting ahead on a home deposit. Those drops of money will cause a real splash down the line, and government contributions to first home saver accounts can also be of great benefit.