How to Save Efficiently to Help Buy Your First Home

Whether you’re considering a home loan in Baldivis or a home loan in Kwinana, the rules are very much the same when it comes to savings, applying for a mortgage home loan and meeting your obligations to repay the debt over the next 20 to 30 years; but there are ways that you can boost your savings.

Is it Important to Save for a New Home?

Home Loan Baldivis

Many people believe that it is better to own a property rather than to rent, although there are several arguments for the opposite. By owning your own property you are mostly in charge of your own destiny, but only after you have cleared the mortgage debt that you will be paying for 20 to 30 years.


Owning your home ensures that you have a roof over your head which provides real safety and security for all of your family.

While everyone wants to move into a new home by tomorrow afternoon, where house prices have been falling or remain extremely flat, there is perhaps no immediate rush to move into a house purchase plan. Prices won’t (probably) be increasing rapidly in the near future.

This gives you the opportunity to save money to be able to apply a larger deposit on the property you are going to be purchasing which will either reduce your mortgage amount required or help you buy a bigger property than you could today.

Making the most of a First Home Saver Account gives you the opportunity to save $6000 during each of three financial years if you’re under the age of 60 and the government offers you a great tax break in return.

This means that inside four years you could have saved a good amount of money to use towards your new home purchase.

Where Should You Save Your Money?

The first home saver accounts are an extremely safe investment, but you might want to build up your funding far quicker by investing in blue-chip stocks in equities via the share markets. Many of the dividends attached to these accounts combine with a 30% tax break, but the share markets are riskier than 100% safe bank investments which means that you might make more money, but if the value of the shares reduces, your deposit money may have shrunk.

Targeting a two or three-bedroom home is probably better than aiming to purchase a one-bedroom unit because it will give more options to you in the future. You might be able to let out one or more of the rooms to receive rent to reduce your mortgage payments, and you also have a more valuable property when it’s time to move on and upwards. There are more people looking for two or three bedroom properties than there will ever be for one bedroom homes.

When you arrange a meeting with your mortgage broker in Rockingham or any of the surrounding suburbs, they will be able to guide you as to the levels of savings that you’ll require before you can purchase your first home loan and own the property of your dreams.