If you’ve started the journey to saving for a house deposit, you’ll know there can be a few hurdles along the way. From how much to save to get started, to saving while paying rent and bills, it can feel a little overwhelming. Here are five simple tips for how to save for a house deposit quickly and help with the road ahead.
Before you start saving, it can be helpful to know how much you need for a house deposit. This will usually be between five to 20 per cent of the property value. Other factors such as your income, credit score, budget and parental guarantors can also be an influence. If it’s your first home loan, it’s worth seeking some professional advice to give you an idea of your borrowing power, and an amount to aim for.
After your research, you should have a good idea of what you can spend and need to save, so the next step is to start an account to get going. Opening a high interest savings account can not only keep your savings separate from your social spending, but your interest can help you reach your goal even faster.
There is no single best way to save for a house deposit, but sitting down with your finances can help to set yourself up for success. Take the time to go through your spending and categorize where your money goes, and make sure you also know the dates of your direct debits, so you can be prepared with those too.
Now, if you can make some simple sacrifices with your spending, you’ll be surprised at what you can set aside. From small sacrifices like swapping your sugary desk snacks for fruit, to bigger changes like renting out a spare room, can unlock big savings over time. Try and make some simple changes to boost your savings.
Saving for a house deposit is a journey, but you want to make sure that you can cross the finish line with pride. Make sure to set a goal that is realistic and achievable.
Even though you’re saving, you should still be able to keep-up your lifestyle and social activities. Keeping upbeat and excited only helps you on your savings journey, and you can even celebrate milestones as you go!
If buying a house is on the horizon for you, start by speaking to a specialist. P&N Bank’s Mobile Lending Specialists can visit you at home or work, night or day, weekday or weekend.
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