First home buyer budget basics
Buying your first home is likely to involve saving money for a deposit, and it can be a lot easier to consistently tuck away savings when you follow a budget. But it’s not the only step involved.
Saving money for a big goal like a deposit on your first home can be a challenge. Yes, it may mean some lifestyle adjustments and perhaps a few sacrifices. But the rewards are there. It takes real determination to save a deposit, and that can make it so much sweeter when you reach your savings target.
Sticking to a personal budget can help you grow savings, but the way you manage debt matters too.
Managing debt and your credit score
A budget can be a must-have to help you save. However, a key step in drafting your home buying budget is to give priority to debt repayments and regular bills. This will help to keep your credit record in good shape.
This matters because lenders will take a look at your credit record when you apply for a home loan, and a good rating can be a deciding factor in whether or not your loan is approved.
In fact, your loan application may be rejected if you have overdue unpaid bills or you have missed repayments on other debts.
That makes good debt management very important. It can even help to reduce or pay off other types of debt before applying for a loan – it’s a step that can also free up extra cash to grow your deposit.
First home buyer budget planner
Aussie’s Budget Planner is a useful tool to understand where your money goes each
Here are a few extra tips to help you grow your first home deposit.
- Cut spending, grow savings – you could look for areas where cutbacks can be made. It may mean giving up a few luxuries but it won’t be forever.
- Boost your income – do you have skills outside your regular job? Consider exploring options to add to your income through freelance work or put your hand up for some overtime. It can be a way of reaching your savings goal sooner.
- Be patient – a few extra months of savings can make a big difference in buying your first home.
- Keep your eyes on the prize – there may be times when you’re tempted to blow your budget. That’s when it’s super important to think about what you’re aiming for.
If buying a first home is on your list of goals – speak to an Aussie Broker!
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- Chapter One : Getting started
- Chapter Two : Your Dream Home
- Chapter Three : Money Matters
- Chapter Four : Ways to Purchase
- Chapter Five : Understanding Interest Rates
- Chapter Six : Understanding Home Loans
- Chapter Seven : Lending Sources
- Chapter Eight : Getting Your loan
- Chapter Nine : Choosing a Home
- Chapter Ten : Steps to Settlement