Tips for a First Home Buyer Saving for a Deposit

Saving for a home deposit can be hard work. Many people find it difficult to make a budget and stick to it, but it’s one of the most effective ways of getting the home loan Auckland first home buyers need. Below are some tips from the trusted Auckland mortgage company Mortgage Masters, outlining budgeting tips and other strategies to save for a home deposit.

Work Out How Much You Need to Save

Create a detailed budget that outlines your income, debts, and expenses. Set realistic saving goals, ways you can achieve them, and a timeline for achieving your deposit (e.g. 12 months). Figure out how much you need to save per week or month in order to have enough for a home loan eligible for Auckland first home buyers.

To save for a home loan Auckland borrowers should adopt an organised approach with clearly defined goals and timelines. A monthly budget works well in terms of providing an easily understandable picture of your finances.

Basics of Budgeting

Start by accounting for annual and quarterly bills. These are the easiest to put into a budget since they are predictable. For example, rent, phone bill, subscriptions, insurance, utilities, etc. Add up grocery receipts from each week into a monthly total under a single category.

Discretionary spending like entertainment, dining, holidays, etc, are harder to work out but offer the most room for savings. Rather than reducing discretionary spending all together, aim to reduce specific costs, for example, setting a limit of $200 a month on dining out.

Organising Your Spending

Organise your budget in a way that suits you. One way is to break down expenditure into categories against your income then allocate parts of your income towards different expenses. For example:

●     Fixed costs (rent, utilities, etc.) – 45% of income

●     Savings – 25% of income

●     Spending money – 25% of income

●     Contingency (unexpected costs and emergencies) – 5% of income

This helps you prioritise what you spend your disposable income on. Spending habits are difficult to predict, especially if you’ve never budgeted before, so you may have to adjust as you go. Again, be realistic. There’s no point allocating 10% of your income to spending money if you’re not going to stick to it.

Tools and Services That May Help

There are a variety of tools out there to make saving for a deposit easier, from spreadsheets to smartphone apps. Find a tool that works well for you. Try out different approaches and tools until you find one you like. Some people find it helpful to seek advice for their specific circumstances and goals. For example, by contacting a mortgage broker Auckland, you can better understand the home loan requirements NZ first home buyers are subject to. 

Consult a Mortgage Broker Auckland First Home Buyers Can Trust

At Mortgage Masters, the independent advisors at our Auckland mortgage company can help you get on the property ladder with tailored advice and services for your unique circumstances. To find out more about debt consolidation, budgeting, and home loan requirements NZ first home buyers should get in touch today for a free consultation.


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