Tuesday, July 20, 2021

8 Ways To Save For A House Deposit

 One of the biggest purchases you’ll ever make in your life is a house. It’s not just the biggest purchase in the size of the building, but the purchase size in terms of cost. A house doesn't just cost a lot over the 30 year mortgage you’ll get, but upfront you have to think about the deposit that you need to pay for to get the house in the first place. When you purchase your first home, you’re going to have to put together fees for solicitors, the house deposit and all of the other costs involved with buying it and getting a loan from the bank. It’s a lot of money and you have to consider these costs and how you’re going to save for them all.

When you get your mortgage quote from https://mortgagequote.com/, you should think about the things that your quote has to include. The deposit is just the thick of it, and you can use the eight tips below to help you to save for a house deposit.

Image Source: Pexels

  1. Work out your affordability. Before you can even start saving for a home, you need to know how much you can actually afford. Most of the time, there are housing affordability calculators out there that can tell you what you can afford to pay out based on your incoming and outgoings. When you know the general snapshot of what you can afford with your house, you can then figure out how much of a down payment you need to have. 

  2. Open a savings account. It’s so much easier to save for your house downpayment if you have a dedicated savings account to do it with. When you keep your savings away from the rest of your money, you’re going to be able to watch your money grow and keep it away from your regular money. If you have a specific goal, a separate account is less tempting.

  3. Automate your savings. You don't have to worry about getting distracted with your savings when you automate it. If you set up your payments to be automatic to your savings account when you get paid, you'll be able to save without worrying about it interrupting your usual financial bills. By having the bank automate your payments, you give the bank a lot of the responsibility.

  4. Save up the extras. When you get your tax refunds and rebates, when you get bonuses at work, do not spend them. Yes, the shoes in the store look good and yes, you want to buy a new tablet, but you need to think about all of the reasons to save those extra money options. Your house deposit is going to be much bigger and better if you’re saving all of those little windfalls up front.

  5. Use a cashback card. Racking up rewards is important if you want to save for your home. If you don't have a cashback credit card, you need to get one. It’s important that you get as many rewards as possible and with 1-5% cash back on every purchase you make, you will soon see the benefits of this particular reward. You can earn money for every dollar you spend on your card, and if you let those rewards build up, you’re going to have so much money put aside for your home.

  6. Put some money into stocks. You need to spend money to make money in some cases, and when you are saving for a downpayment on a house, this is one of the ways that you can do it. Invest some money into stocks and you will be able to see a good return on investment over time.

  7. Get the bank bonuses. There are bonuses that you can earn when you open an account with a bank. Depending on the bank that you open, you can earn several hundred dollars for opening up an account and just being a customer. To earn these, you have to keep some money to one side for a specific length of time.

  8. Spend less. Ah, the simplest one on paper: spend less money and save money. There are plenty of places that you can spend less in your day to day life, so make a point of looking where you can cut the fat a little. Add that money to your savings account. If you know you spend too much money eating out, you can slow that down a lot and save money.

Buying a house can and will change your life, but it will be so much better if you have all of your finances in a row!

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