First home buyer? Tips and FAQ's - savings target calculator

June 23, 2014 by Rikki Stanley

Buying your first home brings with it plenty of questions. Read on for our tips, links to handy tools and frequently asked questions to help you with your journey: 

Saving your deposit - Savings Target Calculator

If you are saving for a deposit to buy your first home, our handy “savings target calculator” can help you find out how much you need to save weekly, fortnightly or monthly to achieve your savings goal.

It’s simple.

All you need to get started is:

• A savings target
• An initial deposit amount to get started with
• An interest rate ( we would suggest being conservative here, use around 3-3.5% or less)
• Your savings frequency (weekly, fortnightly or monthly)
• Your savings term ( years / months)

Once you input your figures, the calculator will provide results including a graph displaying:

1. Weekly instalments required to reach your target
2. The total interest
3. How long until you reach your target

Why breaking it down helps you reach your goal sooner

Breaking the savings requirements down to reach your goal can help the daunting final figure seem a little less overwhelming when you are getting started on your savings schedule.

Breaking it down can motivate you to stick with your plan, and often dedicated savers that commit to savings schedules such as these, reach their targets sooner than they expect. When you tell your broker your plans, you voice your commitment, and your broker can then help you stay on track. 

Why show the interest:

The interest is factored in so that you can see how much you will potentially earn on your money while you are saving.

Genuine savings wins

Lenders look at consistent, genuine savings deposits into a dedicated account as a huge positive when assessing your loan. It pays in more ways than one to get in early with your savings plan as part of the big picture of buying a home.

Start discussions with your broker about finance, while you are in your savings phase.

A broker who is aware of your financial situation even in your planning and savings phase, will be able to assess your ability to service a loan and find you the right home loan when you are ready to start shopping for your property. In other words, they will be ready to go when you are.

Often it can be motivating to stay on track with your saving and property plans, when you know your broker will be calling at the time frame you wanted to achieve your goal at.

When you are held accountable for your goals, you subconsciously try harder to achieve them.  So share them, it can help even when you don’t realise it.

Get in contact with your broker today to help set out your savings goals and work towards buying your property.

Call Daniel Meade from Mortgage Choice today on:

Phone: 07 3833 9666

Email: daniel.meade@mortgagechoice.com.au

Click on the ‘contact us’ tab on this page.

To try the “Achieve savings target calculator” Click here.

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