Get serious about saving for a deposit

Date: 28 September 2014
Get serious about saving for a deposit
Getting on the property ladder is something that features high on many people's wish lists, but unless you've got a deposit saved up, this could well continue to be a pipe dream.
 
Whether you're buying on your own or as a couple, making sure your finances are in check is the best way to have the best possible chance of securing a home loan.
 
Don't expect your deposit to build up overnight - here are some ideas for making those little lifestyle changes that can lead to a big difference for your finances.
 
Set a budget
 
Budgeting skills are important in everyday life and this is especially the case when it comes to building up a deposit for your home.
 
Once you've got an idea of how much you need to save up you can set to work on putting a budget together that's going to be easy to stick to.
 
Make sure you account for all those little extra expenses, including the coffee you regularly enjoy on the way to work and those sneaky drinks after work - they all take their toll on your finances in the long run.
 
Pay down debts
 
One aspect of your finances that lenders will look at is how much existing debt you have, which is why it's so important to pay them down before making a mortgage application.
 
Pay off those credit cards, loans and anything else they might be able to hold against you. It'll make the process a whole lot easier!
 
Set up a separate savings account
 
There's just one problem with using your normal account for saving for a deposit - you might be tempted to dip into it now and again!
 
Having a totally separate account will remove this temptation and, if you play your cards right, you might even be able to find one that offers a decent rate of interest.
Back to articles Filed under: Media / National News Tags: banking, budget, debts, deposit, finance, saving, tips
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