Compile a simple budget to meet mortgage repayments

Budgeting is a key part of everyday life if you want to keep your finances under control and this is certainly true when it comes to taking out your first home loan.

It can be all too tempting to just hope that all your finances will fall into place, but it's more than likely you'll need to do a bit of forward planning to make sure you can meet the repayments.

Putting together a budget doesn't have to be difficult, however. There are some simple steps you can take that will get your finances on track in no time at all and lead a stress-free life in your new home. 

Ascertain your income

The first task is to find out exactly how much you earn in an average month. The same goes for anyone you might jointly hold the mortgage with.

This will give you the opportunity to see how much of your income needs to be dedicated to paying off your first home buyer loan and any other property-related expenses.

Decide where cutbacks need to be made

Most people have some areas of their lives where they can make cutbacks. It might be that you need to sacrifice that takeaway coffee on your way into work or eating out every week.

This will give you more flexibility on a monthly basis, while also ensuring you can make those all-important mortgage repayments.

Set a spending limit

Whether you're buying a property on your own, with a partner or there's your whole family to consider, coming up with a spending limit is a great idea.

Make sure everyone is on board otherwise its chances of success might be limited. There's no point in three-quarters of you working hard to cut costs if the fourth person is still spending as they please.