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Finance

Planning a budget and saving a deposit

Start planning for your future dream

Imagine becoming part of a connected community in a location where your family can truly thrive, and knowing that each day you will wake up in your dream home which has been designed to fit your lifestyle. Planning a budget and saving for a deposit could play a key role in helping turn your dream into a reality, sooner.

Boost your budget

Whether you're saving for a deposit or planning for repayments on your new home, creating a budget could help you reach your financial goals quicker. When it comes to planning your budget, the Australian Government's MoneySmart* online tool recommends taking five key steps, outlined below.

How to plan your budget

  1. Record income: make a list of how much money is coming in and when
  2. Add up expenses: include rent/mortgage payments, bills and groceries
  3. Set a goal: work out how much you can save
  4. Set your spend: determine how much you have to live on after expenses and savings
  5. Review your budget: regularly check (ideally monthly) that you're still on track

Getting your deposit together

This isn't the first home you've purchased, so you are probably aware of banks and lenders usually requiring you to provide 20% of the property prices cost as a home loan deposit. While in some cases you can gain a loan with a lower deposit, it may come with additional costs.*

Dealing with lenders

Don Crellin, Managing Director of Resolve Finance, says some lenders will adjust the interest rate they charge based on your deposit. "If you have a deposit of 20 per cent or more, you can generally get a more favourable deal." You could still negotiate a better rate direct from a lender, even if your deposit is lower.*

Understand other costs

As part of the deposit process, discuss with your mortgage broker any extra costs that come with buying or building a house. These can include conveyancing, legal and bank fees, stamp duty and lender's mortgage insurance. With a full picture of all costs, you can then set a savings target.

What's next?

Need help? Get in touch

No matter where you are at on the home buying journey, one question often leads to another. So if you need more information or support, please get in touch.

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* https://moneysmart.gov.au/budgeting/how-to-do-a-budget We link to external sites for your convenience. We are selective about which external sites we link to, but we do not endorse external sites. When following links to other websites, we encourage you to examine the copyright, privacy and disclaimer notices. Different lenders will have different requirements. Please check with your financier for its specific requirements. Please seek advice from your mortgage broker or financial advisor. Lenders may offer incentives to finance with them however these may vary from lender to lender. Please seek advice from your mortgage broker or financial advisor.