5 ways to save your mortgage deposit faster
Are you wondering how you’ll be able to scrape together a deposit for your first home? What with rent, bills, other expenses and any debts you’ve accumulated, it can be hard to imagine ever getting together the amount needed to secure your first property.
However, if you begin implementing some simple saving strategies, you’ll be able to get your foot on the property ladder sooner than you think.
1. Review your spending habits
This is an obvious one! When you’re saving for something big, you need to prioritise what you really need to spend your money on. So it might be time to cut down the number of times you eat out, limit those online shopping sprees, or swap that expensive gym membership for jogging outside.
2. Stick to a budget and save a set amount each pay day
It’ll be much easier to get that deposit together if you have a smart savings strategy in place, and a vital part of that is sticking to a budget. Careful budgeting will help you figure out where your money is going and stick to a limit, as well as ensuring that you consistently grow the funds for your deposit.
Set up automatic transfers into a high-interest savings account each pay day so that the funds for your deposit keep growing (and you won’t be tempted to touch them!)
Moving back in with your parents might not be your most desired option – but it could help you save for your own home much faster!3. Move back in with the ‘rents
This may not always be a viable (or particularly exciting) option, but it could help you save a tonne! ABS stats show the median weekly rent in Australia is $335 or $17,420 over the course of a year! That’s a significant amount of money you could put towards a deposit.
If moving back home is an option, talk to Mum and Dad about it. They might want you to pay a little board and help out with household chores, but the amount you can save could be worth it.
4. Use your super funds
The First Home Super Saver Scheme lets you make voluntary contributions of up to $15,000 a year and put a total of $30,000 into your superannuation to purchase your first home. The concessional tax treatment and the fact that superannuation often experiences a higher rate of earnings could potentially boost your savings by 30 per cent, according to government estimates.
5. Take advantage of the First Home Owner Grant
Under the First Home Owner Grant, first home buyers can access government funding to assist with the purchase of their first property. The amount of funding available differs between states, but if you’re eligible to receive the grant, you could get a boost of thousands to help you out.
