If you want to get yourself a little slice of the real estate market and have a place you can really call home, a place you can decorate as and when you see fit, then you’ll have to start saving. There are some grants you can get to help, but you’ll need a lot of money to serve as your 10% deposit. Here are some tips on how to save for your first home loan deposit.
- Save 10% of your Paycheck
This is one of the oldest tips in the book, but it’s stood the test of time because it works. Adopt a mentality of paying yourself before paying anyone else. A good way to help with this is to open a separate savings account with a different bank so that you have more trouble accessing the money. Then take 10% of each paycheck and put it through into this new account. You may need to miss out on a few luxuries but you’ll save a lot of money and it will all be worth it.
- Sell your Unwanted Stuff Through eBay
Sites like eBay offer the perfect place to get rid of all your unwanted things and get your hands on some money. Whether you’re selling your old curtains, the music you don’t listen to, or your old clothes, you can generate a lot of money from eBay in a short amount of time. How much you make depends on what you sell of course, but you could be looking at hundreds, if not thousands of dollars.
- Pay Off Your Debts
Paying your debts isn’t a savings tip in the classic sense of the word, but it does help you save money because there’s no interest payments. There are two reasons you should pay off your debts; it increases how much money you are able to borrow, and it gives you more money to pay off your mortgage payments. Start budgeting now to get rid of your personal loans and credit card debts before getting a mortgage that leaves you with hundreds of thousands to pay off.
- Get Rid of Luxuries
While it’s not fun to tighten the purse strings, it is an effective way to save money. Get rid of the luxuries, or downgrade them when you can, and put the extra money in your savings. You don’t need to get rid of absolutely everything though. Slowly get rid of one luxury a month and pocket those savings. By the end of a year you could have saved thousands.
- Get a Part Time Job
If you’re really serious about saving for a home deposit and you can’t stretch your budget any further, then you may want to consider part time work. Working a few evenings a week could grab you a lot of extra money in your account. Babysitting, tutoring students, teaching English, or doing some freelance work are solid examples of what you could do.
There’s never been a better time to take out a mortgage thanks to all the great rates on offer. Be sure to compare rates from different lenders before making a choice.