We’re here to make sure you’re as prepared as you can be to make that experience as exciting as possible without the fear!
The general rule:
As a general rule of thumb, you will need a minimum 10% of the value of the property. This is made up by a 5% deposit plus 5% to cover purchase costs including stamp duty.
We suggest you come to the table a little more prepared though. It’s usually preferred if you push your savings to a 20% deposit.
Here’s an example…
With the median house price in South Australia currently sitting at $450,000 you will need to save at least $45,000. However, the more you can save the better! You can, of course, save the minimum, but you may incur a few extra costs, such as Lenders Mortgage Insurance.
Tips to save for your deposit!
Saving that deposit can be really difficult! so we have some tips to help you grow your savings and your deposit amount to get you in your new home sooner:
- Look at your current spending habits – Reviewing your current spending habits will let you see where you can save some money to put towards your home loan.
- Create a budget – Work out a budget that is realistic, that way you can stick to it.
- Get on top of any debts – It can be hard to save money when you are paying off debts. Talk to a Rise High Broker about debt consolidation and how this may help you pay off your debts sooner.
- Pay yourself first – Set up a direct debit that comes out of your pay each week and goes straight into your savings account before you spend any money or pay any bills. This is a really great way of ensuring you are putting money away for your home each week.
Smart loans
As a first home buyer, you may also be eligible for the First Home Owners Grant. The First Home Owners Grant (FHOG) varies from state to state, however, in South Australia the grant for eligible first home buyers is $15,000 for new homes only.
Another option is a Family Guarantee. If you have family members that would like to help you with your new home purchase they can do this in two ways:
- They can gift some money to you to increase your deposit amount.
- They can offer up the equity in a property that they own as security for the required deposit amount.
This can be a great option as it means that you can often avoid the cost of LMI and save money.
Whatever your current situation, we can help you work out how much you can borrow and how much money you will need to save to get into your first home. Our service to you is free, contact our team at Rise High or fill in your details below and we can get you on the path to buying your first home!
