Thinking about buying your first home?

At Yellow Brick Road South Morang we know that buying your first home can be both exhilarating and terrifying. So, to make the experience easier, it’s important that you understand what to expect and do your 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 on a property. Generally, the aim is have at least 20% of the purchase price saved up, but a lot of first home buyers obtain their first home with a lower deposit and the aid of Lender’s Mortgage Insurance. This 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 South Morang 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.