If you’re trying to save for your first home and feel like the goalposts keep moving, you’re definitely not alone.
Between rent, groceries, bills and the general cost of being a human, building a home deposit can feel overwhelming.
And one of the biggest things we hear from first home buyers is:
“I just don’t think I have enough saved yet.”
But here’s the thing – you might be closer than you think.
Before you decide home ownership is years away, have a chat with a mortgage broker and find out what your position actually looks like.
There may be options available to help you buy with a smaller deposit, and the amount you need can depend on your income, the property you’re looking to buy and your individual circumstances.
So, where do you start?
1. Find out what you’re actually aiming for
It’s really hard to save when you don’t know what the goal is.
Do you need $20,000? $50,000? $100,000?
The answer isn’t the same for everyone.
Before you spend years trying to reach a deposit figure you’ve made up in your head, speak to a broker.
We can look at your income, savings, debts and buying goals and help you understand what may be possible now. And if you’re not quite ready, what you need to work towards.
A real number and a clear plan can make saving feel a whole lot more achievable.
2. Pay your savings first
One of the simplest things you can do is treat your savings like a bill.
When you get paid, move money into savings before you start spending.
Even better, put it into a separate account that isn’t attached to your everyday spending card.
The less you see it, the less tempting it can be to dip into.
You don’t need to save an enormous amount every pay. Consistency matters. Ant it typically gives your loan application strength if a lender can see that you have built your savings over time.
3. Look at where your money is actually going
We’re not going to tell you that one takeaway coffee is the reason you don’t own a house.
But it is worth understanding where your money goes.
Go back through the last few months of your bank statements and have a look.
Subscriptions you forgot about?
A lot more takeaway than you realised?
Buy now, pay later accounts adding up?
Little purchases that don’t feel like much individually but are costing you hundreds each month?
This isn’t about judging your spending.
It’s about deciding whether the things you’re spending money on now are more important to you than the goal you’re working towards.
And yes, no judgement here. You are still allowed to enjoy yourself!
4. Make the extra money count
Tax return? Bonus? Commission? Pay rise?
If buying a home is your goal, think about putting some or all of that extra money towards your deposit.
You don’t have to save every cent you earn and live on baked beans.
But those occasional lump sums can make a big difference to your savings without changing your everyday budget.
5. Be careful with new debts
That new car might look great.
The new credit card limit might seem harmless.
And buy now, pay later can feel like it’s not really debt.
But when it comes time to apply for a home loan, your existing debts and credit limits can impact how much you may be able to borrow.
Before taking out a new loan, increasing a credit card limit or making a big financial commitment, it’s worth checking how it could affect your home buying plans.
6. Don’t wait until you think you’re “ready” to talk to us
This is probably the most important one.
You do not need a perfect deposit, a property picked out and all your finances beautifully organised before speaking to a mortgage broker.
In fact, we’d much rather talk to you earlier.
If you’re not ready to buy yet, that’s okay.
We’ll tell you where you stand, what might be holding you back and what you can work on over the next few months.
No judgement. No embarrassing questions. No pressure to buy a house tomorrow.
Just a clear idea of what your options are and what to do next.
Thinking about buying your first home? Come and have a chat with us. You might be closer than you think.
Get in touch with the Up Loans team for a free, no-obligation chat about your first home buying plans.