One of the toughest
challenges facing first-home buyers is saving a deposit.
Some believe if the family gives
them the funds, they'll be able to get loan approval.
However, the banks use
your deposit and the means by which you came about it, as part of their
assessment criteria for your loan application.
And having the money given
to you, borrowing it, or selling something else to get it just won't always cut
it.
You also have to prove you
can service the loan repayments.
Get it right
Most lenders want to see a
genuine savings history when it comes to your deposit.
The theory is, that if you
have enough money left over after paying all of your expenses to save money,
you should have enough to meet your repayments and manage your finances.
Some lenders will accept
rental payments in addition to your deposit to determine whether you can meet
your obligations.
But at the end of the day,
budgeting and saving a healthy deposit will not only make lenders look at your
application more favourably, but it will also give you a head start when it
comes to buying your home.
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Join now and the cost is less than a cup of coffee a week to manage your
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Jason Gwerder
Tuesday, 30 August 2022
