Many aspiring homeowners constantly look for tips on how to easily build a mortgage deposit saving. Owning a house is expensive, especially for young people.1 The asking prices for such properties are usually very high, and they can be unaffordable if you don’t have money set aside for a mortgage deposit. Let us look at some effective tips that you can use to save for your mortgage deposit.
Top 5 Tips to Help With Mortgage Deposit Saving
Save on Rent
Avoiding rent expenses can go a long way in reducing your monthly dues. You can channel the extra cash into your savings for the mortgage deposit. If you can, move back with your parents. This significantly reduces the amount you spend monthly on rent and bills, helping you build your reserves faster. If this isn’t a viable option, sharing the rental expense with a friend is a great idea.
Earn from Your Rented Space
Do you know it’s possible to make money out of your current rented space? You start with subletting part of your home that you don’t use to raise cash to boost your savings. If you decide to get a lodger, ensure you take every necessary precaution to ensure you and your belongings are safe. It is also wise to consult your landlord on the matter.
Cut Back on Unnecessary Expenses
Take an audit of all your recurring monthly expenses and eliminate any unnecessary expenditures. Find cheaper alternatives, especially for non-essential spendings like phone and television services. You could also change other expensive lifestyle choices like starting to cook at home instead of ordering takeout, or starting a jogging schedule and canceling your gym membership. Technology is also very useful in tracking your expenses, so make use of apps that enable you to set budgets and track your spending.
Don’t Ignore Past Debts
Paying off all your existing debt is an important positive when your lenders are considering your application.2 Your mortgage contract, including the amount allocated and the interest charged, can be based on the outstanding personal debts you have. Clearing these dues early will help streamline the process for you.
Make a Plan and Stick to it
Get an estimation of the amount that you’ll need to save and create a budget based on when you need to pay the deposit. This plan should be reasonable and attainable. Highly ambitious forecasts, especially on expenses you need to cut or on future unguaranteed income, can lead to demotivation.
How to Quickly Build Your Mortgage Deposit Saving
If you are thinking of owning your own home through a mortgage, this is the best time to start putting money aside for it. With most of your income already spoken for, you might need some out of the box strategies. This will help you build your mortgage deposit savings to build your dream house quickly. The above strategies can come in handy.
If you’re thinking of turning your home into an asset, talk to one of our expert advisors about the CalPATH Home Loan Program and how you can use your mortgage to increase your savings.
“About Mountain West Financial and the CalPATH Home Loan Program
Mountain West Financial is the exclusive lender offering CalPATH, the #1 home loan program for Teachers, Police Officers, Firefighters, and other public employees who serve our local California communities.
You may contact our CalPATH Hotline @ 800-310-7577, seven days a week from (8:30 am to 8:00 pm). A CalPATH advisor will be standing by to answer (any & all) questions you may have about the home buying or refinance process.
We look forward to working with you soon!
Links of sources:
- Young people say these are the 2 main reasons they can’t buy homes https://www.cnbc.com/2018/09/14/the-2-main-reasons-young-people-cant-buy-homes.html
- Debt Covenants https://corporatefinanceinstitute.com/resources/knowledge/finance/debt-covenants/