Saving for a Deposit

From Homeowners Wiki!
Jump to: navigation, search

Saving for deposit

If you’re thinking about buying a home, start saving now. The deposit is the biggest initial cost you’ll need to pay—usually at least 5% of the full price. A savings plan is great practice for paying off a mortgage. Lenders may be more willing to lend you money if you have a strong savings history.

Lenders might be:

  • Banks
  • Building societies
  • Credit unions

Saving tips

Talk to your bank about term deposits or other high-interest saving options. Think about shopping around with other banks to find the best deal.

You should look for:

  • The highest interest rates
  • The lowest fees and charges
  • Fair and clear terms and conditions.

Preparing a budget

Preparing a budget can help you understand your financial situation. It could help you see problems as they emerge. This might give you time to fix them before they get out of control.

To start:

  • Record everything you spend for around 3 months
  • Take note of how often you buy individual items
  • Always keep enough money to cover unexpected costs.
  • Download our budget planner to:
  • Track what you earn and spend
  • List your savings goals
  • Estimate your future savings.