Saving for a Down Payment on a New Home

When you’re starting from scratch, any effort to save for your first home deposit can seem gargantuan. Buying a home is the single biggest financial commitment you are bound to make, after all, so you certainly have your work cut out for you. If you’re currently working towards a down payment for your new home, here are a few simple tips that may help you save more money and reach your target faster.

Set up a high-interest savings account

Once you’ve identified your down payment amount, start a high-savings account that’s independent from your household expenses. Calculate how much of your monthly earnings you can spare, then set a weekly or monthly deposit goal that you can stick to.

Reduce or eliminate debt

Eliminate your use of credit cards. If that’s not possible, have your credit limit reduced. Pay your debts on time, and avoid accruing them. Set your down payment as your primary financial goal (apart from necessities, of course).

Apply for a Grant

The First Home Owners Grant can help you out immensely when you’re saving for a down payment on a new home. As of September 25, 2013, first homeowners planning to purchase or build a new home can apply for a grant of up to $10,000.

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