Home Loan: 6 Ways Families Can Save

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home loan

Let’s get something straight:

Getting a home loan isn’t a simple process.

In today’s contributed post, the great folks at RateCity help us navigate the home loan waters. Check it out and let us know what you think!

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Saving up for a home deposit can be quite a tricky feat no matter what financial situation you are in.

For starters, you will need to save the deposit before being able to apply for a home loan.

Other considerations such as your income, credit score on RateCity and credit history are also determinants of attaining your home loan.

However, your priority is to rake up your savings to accumulate funds for the deposit.

Although property prices are continuing to rise in many markets, the home ownership dream is still attainable. Here are some ways you and family can save for a home loan.

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Search for discounts

When paying your bills, pay early so you can benefit from discounts. You can look for discounts in grocery shopping as well as online discounts when purchasing clothing.

Shop at alternative stores that stock lesser-known brands or sell in bulk, such as Aldi and Costco. Compare with various alternatives to find the cheapest deal. You may also want to look for coupons and take advantage of rewards cards for discounts.

A little bit goes a long way, as once this becomes a habit, the effort will prove worthwhile for some major costs savings towards saving up for your home loan.

Cut out unnecessary expenses to help save for your home loan

Rather than paying for Netflix and other paid streaming accounts, you could stream online or watch free TV. Rather than purchasing your lunch every day, you can bring home-cooked meals to work.

Another expensive daily cost is coffee; reducing your intake can add up to some major cost savings. You may also like to use more economical alternatives such as drinking instant coffee or investing in a coffee machine. Reduce impulse purchases and non-essential purchases.

Rather than spending hundreds on a gym membership, you can find inexpensive ways of getting your daily exercise such as taking a jog in the park or doing home-based exercises.

Develop a budget to plan for your home loan

Being well-organized with your spending is a great way to optimize your budget and maximize savings. Give your family a set amount of money to spend per month and keep to the budget.

If that means cutting out chocolate, wine or toys for this month, so be it. You can track in which areas your family is spending the most and see if you can cut back in these areas.

Sell or rent your things

Are there unnecessary items in your house that you could potentially put up for sale? You might consider selling items such as old furniture, electronics, gaming consoles and even vehicles that you no longer use.

You can also rent out unused clothes online using sites like The Volte. You can also sell your effort and skills such as getting commission for art, making music, freelancing, writing an eBook and other hobbies that you can complete on the side.

This second income can be a great way of contributing to your home loan.

Lend your space to pay for your future home loan

Got spare room in your home? If so, you can rent it out through Airbnb.

Or you rent out the entire property while you’re travelling.

If you have a parking space you don’t use, you can also give up this space for rent and have an additional flow of passive income that can contribute to saving up for your home loan.

Related: How To Make Money: 2019 Guide

Prioritize your spending

Rather than splashing out on a holiday overseas, you might want to look for cost-saving alternatives such as going on a local beach retreat or camping in a national park.

Depending on your own priorities, it may be better to purchase a home before splashing out on a big wedding or honeymoon. Most families will feel the need to be grounded with a secure property before using their available funds for celebratory and leisure events.

No matter what stage of life you are in, be prepared to take a home loan to secure a property. Although saving up is no easy feat, using these tips can support your journey to saving large amounts of money for a property sooner.

How to get your home loan

Ok, your turn:

Which tips will your family use to save up for your home loan?

I want to hear if you’re in need of first time buyer home loans or you’re wondering what the best home loans rates are. Let us know in the comments or join the Run The Money Tribe and sound off on Facebook!