Because sometimes we’re grown-ups who like to involve ourselves in grown-up things, we recently chatted The Bachelor’s Laura Byrne (who – mazel tov! – just announced she’s pregnant with her second beb to fiancé Matty J) and CUA money expert Emmanuel Davatzis about all things cash dollars. More specifically, how to save that cash and secure a home loan. One lucky attendee even walked away with $500.
If you, like me, know absolutely zero about finances – like, what is stamp duty and do I even need it? – then you might want to read on. Maybe even take notes. Because as it turns out, saving for a house isn’t that hard when you’ve got the right intel.
Here’s what you should know.
First, set up a solid savings account
Who would’ve thought that buying a house would first involve saving some pretty pennies? Funny that. Emmanuel recommends securing a high-interest rate savings account to make sure all your dollars are accumulating nicely. Oh, and also read the terms and conditions properly. Don’t just scroll and hit submit.
Depending on your institution there might be a few secret catches you’ll wanna be across.
Second, try to stay sane while you’re saving
It was actually super refreshing to hear two people talking about moderation when it comes to saving. I’ve never been a good saver because I’m just so not into self-restraint. But, Laura swapped out coffee and croissants and saved herself 6K A YEAR.
What the actual. Savings can be addictive so try not to go crazy chasing that bank – remember to treat yourself and live a happy life at the same time.
Third, make the most of all the calculators
CUA has an excellent Savings Planner Calculator AND a Budget Planner Calculator. They basically offer expert advice for free. Plug your numbers — such as incoming salaries and outgoing expenses — into these calculators and start wrapping your head around the big picture.
These calculators will help you figure out a ballpark figure that you can borrow before you go through the proper pre-approval process.
Fourth, protect your credit score
I don’t know what my credit score is or how to find it out, but financial institutions do. And your credit score can either wreak havoc or heaven on your home loan.
A tip from the experts – never pay your bills late. Apparently if you don’t pay your phone bill within 60 days it actually shows up as a default, which is a big no-no for maintaining a good credit score. Set up those direct debits and make sure your bills get paid on time.
Lastly, take the time to figure out what home loan is best for you
Are you a fixed rate kind of guy or more of a variable interest sorta gal? Do you wanna offset your accounts or make extra loan repayments? It’s worth deep diving into this world to establish exactly what loan will work for your personal finances and circumstances. If you’re really overwhelmed, this handy guide might help.
Getting the keys to your first townhouse or tiny home is a big deal, guys. It’s exciting but can also be super duper intimidating. But if you take your time, do your research and show a little determination you could be throwing the most epic housewarming in no time.
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