Preparing for Your Home Loan

Saving for your Deposit can be tough with the cost of living, and cost of rent these days.

Every dollar counts but it’s only fair you give yourself a break.  You may only be starting out with a minimum wage job, trying to improve your work prospects.  Reinvesting in yourself whether it is by work experience or study can mean you can life a more comfortable life and easily afford the savings you need for  a home.

I read some articles about teenagers 18 years of age buying their first property, and you can see they have had the help of a parent being co-borrower, or having a large amount of money gifted to them.  This can leave you disheartened if you don’t have the same lucky breaks.  Don’t despair though, you can achieve your goals on your terms with the right support.

Lenders are looking for a few things:

  • Good credit (pay your bills on time)
  • Good income
  • Not too many Debts
  • Bank Accounts in good order – no overdrawn accounts

Sometimes we can be juggling so much we can drop the ball every now and then, but it doesn’t take long before you get back on track again.

Spreadsheets and phone apps can really set you on the path to watching how you spend your money.  So be truthful with yourself – if you don’t like technology don’t try and track your spending with a phone app.  A journal may work just as well for you and you’ll be able to express how you feel eg just before you binge shop online.  You may find a pattern in your life which is sabotaging your saving goals.

Some great resources for saving for First Home Owners can be the First Home Saver Scheme which is run by the Australian Tax Office.  You’ll need to salary sacrifice extra money to this scheme but it may help you save the deposit for your home.

Can you use your First Home Owners Grant towards your deposit?  The answer is yes – if you build but only with selected lenders.  Will you still need a deposit saved?  With our lenders – yes you will still need to have savings as well for the low interest rates that we offer.

If I have bad credit do I still have options?  Yes this is still an option for you – we have a few hints and tricks to help you give your credit file a makeover and to understand how to read your credit file.

If you would like to have a chat about how to prepare yourself for your loan, please call 0403 211 361 or email and we can help you with a plan