Saving for a deposit?
The first step in saving for your home deposit is to set yourself a savings goal. Most lenders will require a deposit of 20% of the amount you are borrowing. So if you’re looking to buy a house worth $300,000 you’ll need to save a deposit of $60,000.
Remember – The bigger your deposit, the less you’ll pay in interest over the long term.
Once you’ve worked out how much you need to save, use a money planner such as the one found on www.sorted.org.nz website to work out how you are going to reach your goal and set up a budget. You may need to cut down on non-essential spending for a while but the satisfaction of owning your first home will be worth it.
If there is a difference between what your mortgage repayments would be and what you are currently paying in rent, try adding that amount to your regular savings. It will give you an idea of how well your budget will be able to cope.
Don’t hesitate to come in and talk to us about how we can help to get you started on your home deposit savings plan now!
At WBS – Mortgages are what we do!