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At Yellow Brick Road Penrith we know that buying your first home can be a mix of exciting and terrifying. So, to make the experience stress free, it’s important that you do some research to make sure you are financially prepared and know what to expect when it comes to buying your first home.
Saving for the deposit
The first thing any new home owner or investment property purchaser needs to think about is their deposit. Ideally, the goal is to have at least 20% of the purchase price saved up, however, we know that not all first home buyers can easily achieve this. So, if you want to obtain your first home but don’t have a large enough deposit consider getting Lender’s Mortgage Insurance. Lender’s Mortgage Insurance is a low deposit loan so it is a good way to still get a loan if you haven’t quite saved up the 20%.
Ultimately, the bigger the deposit, the less money you’ll have to borrow – so it’s a good idea to put a savings plan (use our savings calculator to get you started http://www.ybr.com.au/calculators/savings) in place to get you to your goal. Regular contributions to savings are helpful when you’re going for a loan; it shows the lender that you’re responsible and capable of making steady payments. If you’re still unsure of what you need to save, then contact one of our friendly mortgage brokers at our YBR Penrith Branch.
Finally, if you need some motivation to improve your savings discipline with a better budget, use our budget tool to set a plan in place and see just how much you can save.
We have you covered on all stages of your property journey