Getting a loan to purchase your first home may sound like a daunting task, especially when it is close to impossible to secure a 100% loan nowadays. Lenders are more cautious before they help you finance your home, making sure that you are financially ready to keep up with your repayments.
Saving up for your first property is the best way to get the home of your dreams. If you don’t know where to start, here are several tips on how you can save up without breaking a sweat
Set realistic goals
Before you go around shopping for property, make sure that you are choosing one that is realistically possible and sustainable. It is also good to evaluate your current situation and see where you can improve on from there. Financially, you should also make sure that the repayments are achievable, without having to compromise anything important.
Have a budget plan
Your budget plan should give you a fairly good idea as to what you can and cannot afford. Most people miss this part and often find themselves in a hole, realizing that they cannot afford repayments later on. Make sure you also consider scenarios, such as family emergencies, job losses and other uncontrollable factors when laying down your plan. Budgeting coupled with a good savings plan will help you keep up with our repayments, but still have enough to spare.
Clear out debt
Credit cards can be convenient to use, but such a pain to pay off. Clear them off as soon as possible, even before you start thinking of saving up. This will help you lessen interest payments, and will increase the amount you can borrow. Lenders are very keen on this, so make sure you take care of this before securing a home loan.
Know your concessions
Each state has a First Home Owner concession that you can take advantage of, especially for first time home owners. Take time to learn and understand other grants and stamp duty exemptions that you may be eligible for.
Seek professional advise
Nothing beats advise coming from professionals. They know the inner wirings of the financial and property market, and will be glad to assist you in getting the home that best suits your lifestyle and financial standing. When seeking financial advise, make sure you choose one that has your best interest in mind.
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