Tips to help with your first deposit and home loan budget

Article by Mozo https://mozo.com.au/home-loans/articles/will-2024-be-the-year-of-the-bridesmaid-suburb-for-homebuyers

Jarrett Dalton admits that a first home purchase can be a hard slog but you can do it by setting achievable goals, marking them on a timeline and making sacrifices to reach each target.

“Make sure your timeframe is reasonable, based on your necessary expenses and then make smart decisions around what you’ll avoid to achieve your goal,” she says. “Then just do it. Your ability to go ‘without’ will surprise you if you are determined and have a deadline.”

In addition, she says a bit of extra money will help with your budget. So why not try the following:

Sell assets that aren’t being used, clean out closets and sheds and sell items on a well-known marketplace.

Pickup additional shifts at work or second jobs – do you have a skill that you can market in the gig economy?

Consider government schemes available like the first home super saver scheme or the home guarantee scheme.

Think about moving back home with your parents and saving for a period of time.

Do you actually need a deposit – can you utilise a family pledge to buy your home? Buying with a family pledge makes it easier to get your home loan approved because your family member acts as a guarantor. In short, they offer your lender security. But this isn’t for everyone and is worth discussing with a financial expert.