In this article:
At Yellow Brick Road Melton we understand that buying your first home can be both exciting and terrifying. So, to make the experience easier, it’s important that you know what to expect and that you do some research to ensure that you’re financially prepared.
Saving for the deposit
The first thing any budding home owner or investment property purchaser needs to think about is their deposit. The goal is to have at least 20% of the purchase price saved up, however, not all first home buyers can easily achieve this. So buyers can often obtain their first home with the aid of 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%.
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 feel free to talk to one our of friendly mortgage brokers at our Melton branch.
Finally, if you need to improve your savings discipline with a better budget, use our budget tool to set a plan in place because helping you achieve your financial future is our primary goal.
We have you covered on all stages of your property journey