We all have to start somewhere. The process can feel overwhelming, but take a moment to step back, breathe, and remember: with a solid strategy, you could hold the keys to your first home sooner than you think. We’ve compiled some fantastic saving tips for first home buyers to help reduce your stress and keep you motivated on your journey to making your dream home a reality.
Start with a budget
The first step is knowing exactly how much you need. Be realistic but consider saving a bit more than your estimated amount. Decide on a timeline. When do you need the money and how much will you save each month to reach your goal?
Know your finances
The more you understand your finances, the better. Calculate your income and expenses precisely. How much is left, and does this align with your savings target to become a first-time home buyer?
Create some cost-saving techniques
The more you save, the sooner your dream of buying your first home will come true. Look for ways to cut costs. Are there memberships you’re not using? Can you replace gym visits with running and home workouts? Do you need to visit the hairdresser so often? Are you subscribing to services you rarely use? How much are you spending on coffee or takeaways? Review your bank statement and note all the ‘extra’ expenses each month. You’ll be surprised by how much more you can save by cutting down on these non-essential items.
Open a dedicated savings account
Create a separate ‘first home buyers’ account to allocate your monthly savings. This will prevent you from dipping into your funds for other expenses and make it easier to track your progress. Choose an account with a higher interest rate to accelerate your savings growth.
Look for a side hustle
Consider taking on a side job to earn extra cash. Many opportunities allow you to make additional income without significantly interfering with your current job. Alternatively, talk to your current employer about the possibility of extra work or negotiating a raise.
Move back home
If feasible, moving back in with your parents or staying with a friend or family member for reduced rent can help you save significantly. Though it might not be ideal, living at home for a few months or even a couple of years can quickly build up your funds, making the temporary inconvenience worthwhile when you become a first home buyer.
Reduce your debts
You want to be as debt-free as possible when going into buying your first home. Banks or lenders will look kindly on people who are paying off their loans. Make a list of all your debts and use any extra money to start paying them back.
Speak to a mortgage broker
Navigating the process of buying your first home can be overwhelming and confusing, especially with all the financial considerations and paperwork involved. This is where a mortgage broker can be invaluable. By reviewing your finances in detail, a mortgage broker can help you understand your financial standing and identify areas for improvement. They can also guide you in creating a solid budgeting plan tailored to your needs and goals. Additionally, mortgage brokers have access to a wide range of loan products and can negotiate better terms on your behalf, making the entire process smoother and more manageable.
A free service that makes the home loan process so much easier
No matter where you are located across Australia, our dedicated team is prepared to assist you in achieving your financial goals. At Cherry Lending & Finance, we are committed to providing you with the support and guidance you need to thrive in your property and financial endeavours. If you’re confused about how to get a home loan, talk to us!
