Tips To Fast Track Your First Home Deposit

Are you a first-time homebuyer ready to take the plunge into the property market? Saving up for a home deposit can be a lengthy process, but with the right strategies in place, it doesn't have to be! As an experienced Australian mortgage broker, I'm here to provide some helpful tips on how to fast track your first home deposit. In this blog post, we'll explore the different methods you can use to quickly build up a substantial deposit and get into your dream home sooner rather than later. Keep reading to find out how you could be saving up for your first home deposit in no time!

Create A Budget To Track Your Savings

Creating a budget to track your savings is an important step when you’re trying to fast track your first home deposit. A budget will help you to keep track of your income, expenses and savings, so you can make sure you’re saving enough for your deposit.

Start by listing all of your current income sources, such as salary, any investments and rental income. Then, list your expenses, such as rent, bills, groceries, and other regular payments. Make sure you factor in any one-off expenses, such as car servicing or holidays. Once you’ve listed all of your income and expenses, subtract your expenses from your income. This will give you an idea of how much you have left over to save towards your first home deposit.

Once you’ve created your budget, it’s important to review it regularly. This will help you to keep track of your spending, and make sure you’re sticking to your budget. You may want to review your budget every few months to ensure you’re still on track to save enough for your deposit.

If you’re having trouble sticking to your budget, you may want to consider creating a savings plan. Set yourself a goal – for example, saving a certain amount of money each month – and create a timeline to help you reach your goal. You may also want to find ways to boost your savings, such as cutting down on unnecessary spending or finding a second job.

Creating a budget and saving plan is a great way to help you fast track your first home deposit. By tracking your income and expenses, you can ensure you’re making the most of your savings and stay on track to reach your goal.

Take Advantage Of Government Grants & Schemes

When it comes to fast tracking your first home deposit, taking advantage of government grants and schemes is an excellent way to ensure a smoother process.

The Australian government offers a variety of grants and schemes designed to help first home buyers. These include the First Home Loan Deposit Scheme, the First Home Super Saver Scheme, the First Home Owner Grant and the HomeBuilder Grant.

The First Home Loan Deposit Scheme is a great option for those looking to purchase their first home. This scheme allows first home buyers to purchase a home with a deposit of as little as 5%. However, this scheme is only available to those with an income of $125,000 or less for singles and $200,000 or less for couples.

The First Home Super Saver Scheme is another government scheme which allows first home buyers to save money for their first home deposit by making voluntary contributions to their superannuation. These contributions are taxed at a lower rate than regular income, allowing first home buyers to effectively save money on their deposit.

The First Home Owner Grant is a one-off payment of up to $10,000 offered to those who are buying or building their first home. Depending on the state or territory you are in, you may be eligible for the grant.

Lastly, the HomeBuilder Grant is a one-off payment of up to $25,000 offered to those who are looking to build or substantially renovate their home. To be eligible, you must be an Australian citizen over 18 years of age and have an income of less than $125,000 per annum.

It’s important to research all the available grants and schemes to determine which one is best suited to your needs. It’s also important to understand the eligibility criteria for each scheme to ensure you are able to take advantage of them.

Finally, it’s important to remember that grants and schemes can change over time and new ones may be introduced, so it’s important to keep up to date on any changes to ensure you are taking advantage of all available opportunities.

Consider A Savings Account With A Higher Interest Rate

When you are saving for your first home deposit, it is important to consider a savings account with a higher interest rate. This will help you to grow your savings faster and reach your deposit goal quicker.

When looking for a higher interest rate savings account, you should compare the interest rates offered by different providers. Make sure to look at both the advertised rate and the bonus interest rate to get an understanding of the total amount of interest you will earn. You should also consider any fees or charges that may apply to the account, as these can eat into your earned interest.

In Australia, some savings accounts offer bonus interest if you deposit a certain amount of money each month. This can be a great way to encourage you to save and also help you to save more money more quickly. However, it is important to make sure that you can afford to make these deposits each month.

Look for a savings account that doesn't lock your money away and allows you to access your money quickly if you need it. You may need the money for unexpected expenses or you may want to use it as part of your home deposit.

Finally, it is important to remember that the interest rate you are earning on your savings account is just one factor when it comes to saving for a deposit. You should also consider other ways to save, such as reducing your expenses or increasing your income. It is also important to consider your financial situation before committing to a savings account with a higher interest rate.

Look Into Ways To Increase Your Income

Saving for a first home deposit can be a long and difficult process, but there are ways to fast track it. One of the best ways is to look into ways to increase your income.

The most obvious way to increase your income is to take on a second job. This could be something part-time like hospitality, retail or freelance work. It’s important to consider the impact of extra work on your lifestyle, however, and to make sure you’re not taking on too much and burning yourself out.

You can also look into ways to increase your current salary. Depending on your industry, this could involve furthering your studies, taking on more responsibilities at work or looking for a higher paying job.

For those with entrepreneurial skills, starting a side hustle could be a great option. This could involve selling products online, offering services like tutoring or becoming an Uber driver.

Finally, you could look into ways to make money passively. This could involve renting out a room, investing in the share market or starting an online business.

No matter what you choose, it’s important to remember that increasing your income can be a long-term process. It’s important to keep your goals in mind and stay focused on your savings plan.

Got questions about your home loan? Let's talk

At Ello Lending, we understand that saving for a first home deposit can be a daunting task. We’d love to help you make your homeownership dreams come true. We offer advice, personalized strategies, and tailored loan solutions to help you fast track your first home deposit.

If you have any questions or would like to get started, please don’t hesitate to get in touch. Our experienced mortgage brokers are here to answer your questions and work with you to find the best option to help you achieve your goals.