Home News First home buyer saving schedule

First home buyer saving schedule

Font size :
Q. I have slowly started saving for a deposit for my first home. What sort of timeline should I give myself to save a deposit of 20% or more for a property around $400,000?

A. The amount of time it will take to save for a deposit will depend on a number of things including your income, expenses and amount of surplus cash you have left over. According to Bankwest, “it takes the average Australian first home buyer 4.2 years to save a deposit if 20% or more.” So the sooner you can start saving, the less financial stress you will be putting on yourself. Below is a possible timeline you can use as a guide:

24 months before: This is when your repayment history will start to affect your credit report. Under the new credit reporting system, lenders can now see the past 24 months of your repayment activity. So, if you know that you sometimes miss bill due dates, now is the time to create a new strategy to ensure you meet all of your repayments on time.

This is also a good time to check your credit report to ensure there are not any mistakes recorded on the report. By doing this now, you will have enough time to contact the company who made the record and have the issue rectified.

12 months before:  It is a good idea to check your credit report every 12 months to ensure that you are still in a good financial position and check for any mistakes.

It is important to review you debt and start to buckle down and save for a deposit. Personal loans, credit cards and other financial commitments can affect your borrowing power, so if you are able to eliminate some liabilities, it may help improve your borrowing power and also give you extra money to put towards your deposit.

6 months before: Lenders require a certain amount of paperwork to verify your information. So to help save time during the application process, make sure you have all of the required paperwork ready. This may include tax returns, payment summaries, payslips and bank statements. 
If you haven’t already started, research different lenders and home loan products available. This will give you plenty of time to speak with different lenders and see which home loan will best suit your needs. 

3 months before: This is a good time to contact your lender and organise a pre-approval. You should organise a pre-approval before you start house hunting as you will know what your loan limit is when you go to make an offer.

However, applying with multiple lenders can affect your credit report, so only hand in an application form with a lender that you are intending to go with. 

It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan

Mortgage News and Articles

House prices return to more affordable levels in mining towns House prices return to more affordable levels in mining towns

While the end of the mining boom has had a negative impact on property prices, homes in the region have become more affordable Read more

Borrowers should anticipate a possible rate hike Borrowers should anticipate a possible rate hike Some experts advise borrowers to look for a fixed loan that allows extra repayments so that they can whittle down the balance sooner ... Read more

Why choosing the right mortgage is hard for first-home buyers Why choosing the right mortgage is hard for first-home buyers Many feel overwhelmed by the sheer range of products and interest rates on offer, a new survey reveals ... Read more

Mortgage applications drop in second quarter Mortgage applications drop in second quarter This marks the “beginning” of a downward trend, says Equifax executive ... Read more

More mortgage news and articles

Sponsored Links

Thursday, Jul 27, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Whether you're a first homebuyer, looking to refinance, or investing, it's important to have the right loan for your needs. Just fill in a few details below and one of our trusted mortgage advisers will contact you.

A quick & easy way to find the right home loan
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords