Newspaper article The Observer (Gladstone, Australia)

Home Ownership Is Possible If You Spend Wisely, Save a Good Deposit and Work to a Budget

Newspaper article The Observer (Gladstone, Australia)

Home Ownership Is Possible If You Spend Wisely, Save a Good Deposit and Work to a Budget

Article excerpt

THIS week Gladstone Mortgage Choice Limited franchise manager Kellie Bebendorf gives six steps to saving for a house deposit.

If you are ready to break into the property market - now is your chance to pick up some local advice from a true-blue professional.

Six simple steps to saving for a house deposit

BUYING a first home is often one of the largest financial decisions most Australian's will make. Needless to say, saving a deposit for such an investment should certainly be of high priority for first homebuyers looking to enter the property market in the near future.

Saving a home loan deposit often poses a significant challenge for potential buyers when juggling it with the cost of living while still trying to maintain an enjoyable lifestyle.

But it is important to remember the more money you have to contribute towards the deposit, the less money you will have to borrow and repay with interest.

While a minimum deposit of at least 5% of genuine savings is generally required, if your deposit amounts to 20% of the property's value you may be able to avoid paying costly Lenders Mortgage Insurance.

So before you buy, buckle down and work out a detailed budget to help you remove any unnecessary spending.

It is important to keep in mind most lenders require a certain percentage of your deposit to be made up of genuine savings accumulated over a period of time.

There are many different ways that you could boost your savings, and reach that dream of purchasing your own home sooner.

Here are a few simple savings tips you could consider when saving your home loan deposit:

Be realistic about your goals: In order to make your savings plan work, it is important to allow for treats every now and again and to reward yourself when you hit key milestones.

This will help keep your savings momentum going! …

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