There can be no doubt about it – buying your first home is one of the biggest steps that you'll take in your adult life. It's a veritable milestone, and as such, can seem a hugely daunting prospect. After all, it's unlikely you're ever going to spend a bigger amount on any other single item – unless you have a penchant for luxury yachts, of course! You can make this giant leap that little bit easier by applying for a home loan from CAPE, but first, you'll need to save some money. Here is our guide to good saving practices for your first home.
How much do you need?
According to the Australian Investments and Securities Commission, you'll need to have 20 per cent of your home's value stashed away to secure a home loan. That may be the case with the major banks, but at CAPE, you can have as little as 5 per cent saved to get a loan from us (as long as you have mortgage insurance in place). Of course, the value of your home will determine how much you'll have to save – a large, central Sydney townhouse is always going to be tougher on your wallet than a place in the furthest-flung reaches of the Northern Territory, so do your maths accordingly.
By setting up a simple spreadsheet, you can watch what you're spending like a hawk.
Keep an eye on your outgoings
As soon as you've established a system for squirreling away what you can at the end of each week or month, it's time to turn your attention to what could be stopping you putting the maximum amount away – your outgoings. By setting up a simple spreadsheet, you can watch what you're spending like a hawk, and it will enable you to see where you can tighten your belt. Of course, it's a lot easier to save the necessary amount if there are two or more of you putting dollars into the pot – but by slicing back on those little luxuries, you'll get to your target amount a whole lot faster.
Put your savings in one place
Opening a dedicated savings account is the simplest, quickest and most efficient way of seeing precisely how much you have stowed away. At CAPE, we have a range of savings accounts for you to choose from, each with their own distinct benefits. If you aren't quite sure which to plump for, be sure to get in touch with our friendly team who'll be happy to help.
