Finding the deposit for your first home is not an easy task. If you are living in rented accommodation now, how can you pay all your bills and still find enough to save for a deposit? It is not easy but also not impossible.
You probably really value your independence that you have by renting your current home. You could give that up on a short-term basis though, to secure a more permanent home for the long-term.
It could be that you move back in with your parents, or maybe a friend for a while. You would have to put some finances in place, like how much rent you will pay, and how you will split any bills, but it will be a lot cheaper than renting a place of your own. You should probably discuss helping with household chores too, as they will be giving you the chance to save you deposit a lot quicker, and it is the least you can do in return. It is a good idea to put a time limit on the temporary stay as well, as that will concentrate your efforts on saving.
Find Somewhere Cheaper
You are not on your own in this situation, there are many people trying to buy their first home. Some of got around the high cost of renting by house sharing for a while. This works by each person having their own bedroom, but all the other facilities are shared. The rent and bills are split between you all, and this can save you a lot of money. Some people have rented a house that has 6 or 7 bedrooms, and with that many people contributing, the monthly costs can be greatly reduced.
Know How Much You Need
You could be thinking you need much more money than you really do. Finding out more about this is easy when you speak to the experts are Altrua. They will be able to advise you about the special deals that are currently on offer from lenders, many of which are specially designed to help people buy their first home.
Get Some Help
If you fit the criteria, there are federal schemes in place to assist first time buyers, and some states have schemes too. You need to look into these to see if there is any way you can get help towards the deposit for your first home.
Then, of course, there is always the bank of mom and dad. If their finances allow, they may be prepared to make you an advance that will help you to get on the property ladder, but make sure that you have an agreement in place to pay them back as soon as you can. You have to remember that unless you have rich parents, the money they lend you could be from their retirement fund and it would be very unfair just to take it from them as a gift.
The one thing you must not do is borrow the money for the deposit from a financial institution. This will appear on your credit report, and lenders will refuse your mortgage application when they see you have done this.