5 Ways to Save for a Mortgage Down Payment

Owning your home might feel like a pipe dream if you do not have enough money for a deposit. However, there are many ways to boost your bank balance, so you will soon receive the keys to your first property. Read the five ways to save for a mortgage down payment.

1. Open a Savings Account 

Separate your income from your mortgage savings, so you will never unwittingly or deliberately spend the money. Look for a high-interest account that will allow you to maximize your savings, so you can make a down payment on your dream home sooner rather than later. Do your homework to find the best savings account for your cash.

2. Create a Budget 

Before you start saving, you must first identify how much money you will need to put away each month. Factor in all your monthly bills, such as your rent, car payments, credit card debt, shopping budget and more. Review the numbers to discover if you are spending too much money on a morning cup of coffee, or if you can consolidate your debts into one lower monthly repayment.

Once you have identified how much cash is left at the end of each month, you will know exactly how much money you will need to save – so you can estimate how long it will take to put down a deposit.

3. Start Selling Your Stuff

Sell your unwanted items to boost your bank balance and save for a mortgage deposit. Advertise your unwanted gadgets and books on a marketplace smartphone app, online auction website or at a second-hand store. You can even sell a gift card for cash at ejgiftcards.com. Not only can it amplify your savings, but it will help you to downsize your belongings before you move into your new home.

4. Save Your Windfalls 

Saving up all those little financial windfalls can make a big difference to your savings. Whenever you receive money for a birthday, tax refund or bonus, you should use the extra cash towards your deposit. You could even ask friends or family members to swap a present for money when presenting you with a Christmas, wedding or anniversary gift.

5. Have an Emergency Fund 

Life can sometimes stand in the way of our dreams. Unfortunately, a car repair, medical expense or unexpected bill can eat away at our finances. If you don’t have a rainy-day fund, you might have to dip into your savings. To ensure you don’t need to take money out of your account, we recommend having an emergency fund, so you will be financially prepared should the worst happen. The financial flexibility will ensure you remain on target so you can finally invest your hard-earned savings into a new home.

Do you have any helpful tips for saving up for a mortgage down payment, or handy advice for budding home buyers? Feel free to share your helpful tips with our readers by writing a comment below.