Achieve your dream homeownership sooner than you think!

Getting ready to buy a home starts with saving for the deposit. It might seem challenging, but with a solid strategy, you can make it happen.

Here are several things to consider to get you started and on track for home ownership sooner than you think.

1) Set a Realistic Savings Goal

Determine how much you need for a home deposit based on the property you want to buy and your lender's requirements. Typically, a deposit of at least 20% of the property's purchase price is recommended to avoid paying lenders mortgage insurance (LMI). Use online calculators to estimate your deposit amount based on the property prices in your desired location.

2) Create a Budget and Cut Expenses

Analyze your current spending habits and identify areas where you can cut back. Use a budget planner to allocate a portion of your income specifically for saving towards your home deposit. Consider reducing discretionary spending on dining out, entertainment, and non-essential purchases to boost your savings.

3) Open a High-Interest Savings Account

Open a dedicated savings account for your home deposit and choose one with a competitive interest rate. Look for accounts that offer high-interest rates and minimal fees to maximize your savings over time. Some banks also offer bonus interest rates for regular deposits, which can help accelerate your savings growth.

Check out this handy savings goal calculator to find out:

• How long it will take to reach your savings goals
• What steps you need to take to put your plan into action

When you’re getting close to your goals, it’s time to seek pre-approval from a lender for a clear idea of what you can afford before making a final decision on buying a home.

4) Automate Your Savings

Set up automatic transfers from your regular account to your dedicated savings account on each payday. Automating your savings ensures that a portion of your income is consistently set aside for your home deposit, making it easier to stay on track towards your savings goal.

5) Explore Government Incentives

Take advantage of government schemes and incentives designed to help first-home buyers save for a deposit. In Australia, the First Home Super Saver Scheme (FHSSS) allows individuals to make voluntary contributions to their superannuation fund, which can later be withdrawn to fund a home deposit. Additionally, some states offer grants or stamp duty concessions for first-home buyers, so research the incentives available in your area. Some links are provided below:

• First home owner grant
• First home super saver scheme
• Home guarantee scheme

6) Stay Focused and Persistent

Saving for a home deposit requires discipline and patience. Stay focused on your goal, track your progress regularly, and celebrate milestones along the way. Remember that every dollar saved brings you one step closer to achieving your dream of homeownership.

Saving for a deposit is a big goal, but you can do it with a bit of planning and help. Expert guidance from our team at FinancePath can help you on this exciting journey to owning your home.

Call 1300 780 440.