3 Quick Ways to Save Up for a Deposit
If you’re keen to start saving in time for your mortgage application, we have some good news. Michael Davis had the chance to sit down with online mortgage broker Dana Boyd – a specialist in her field having served the people of Melbourne for several years now. Take a look at their chat below; you’ll undoubtedly enjoy 3 helpful ways to save up for a deposit on a home loan.
Michael: Hi Dana, it’s great to speak with you. We’re here today to learn a little more about how first time home buyers could start saving up for their home loan.
Dana: Hi Michael, it’s lovely to be here. Okay, so the first thing that I have to say is that one of the most important things about applying for a mortgage is making sure that you go for the right one.
Michael: How do you mean?
Dana: Well, there are a multitude of borrowing options; from securing a loan using assets like a car or already-owned property, right through to low interest mortgages and so on.
Michael: I see, so what would your first piece of advice be?
Dana: Definitely to apply for the right mortgage. Depending on how much you earn and what you can afford to repay, you could find yourself able to enjoy a deposit of 15 or even 10%. In some cases, banks are so keen to take on particular types of borrowers that they’ll reduce their deposit even further, or negate it entirely.
Michael: Which types of borrowers are these?
Dana: Mainly doctors and other career professionals, but that doesn’t mean that you can’t maximise your potential to save. In fact, that brings me on to my next piece of advice – if you take the time to properly prepare your application, including compiling a breakdown of your earnings, expenses and other financial features – you could find yourself being prioritised over others that rely on the bank to take care of all of the hard work.
Michael: That’s a fantastic tip: the more that an applicant prepares, the better their potential chances will be at finding a loan with a lower deposit (and therefore reducing the need to save more).
Dana: Exactly. Although there’s no guarantee that a lender will allow you to take advantage of a lower deposit, you could certainly ask for a little leniency if you can showcase your potential to repay, or demonstrate a clear ability to meet your repayments in general.
Michael: So, what would your final piece of advice be?
Dana: This is a bit of an inside trick, but it does seem to work. In the simplest terms, you’ll need to look good to your potential lender for the period in which they will review your financial history. So, by cutting out needless spends, saving up more money and limiting your expenses over the course of a year for instance, you’ll be able to present your bank with documentation that shows them just what you are capable of. You’ll be likely to have plenty of extra cash in your pocket for your deposit, or to enjoy after your application, too.
Michael: Thank you so much, Dana. For those of you that are interested, you’ll find more about Dana and her online mortgage broker services by calling her at 1300 447 010.