Figure out how much you need for your deposit.
The first step to saving your deposit is figuring out how much you need.
This will be determined by two main factors: the amount that you are able to borrow and the percentage of the purchase price that you are required to have up front.
Once you have an indication of how much you may be able to borrow you can work out the percentage that you need for a deposit.
The great news is that SBS is a First Home Loan lender, which means that if you meet the eligibility criteria you will only need a 5% deposit to buy your first home. Don’t worry if you don’t qualify for the First Home Loan, the Residential Home Loan is also available to First Home Buyers with a 20% deposit.
If you’re a maths whizz you should now be able to do the percentages in your head. Otherwise, check out our Home Loan Calculators to figure out how much you should aim to have for your deposit.
Residential lending and eligibility criteria, T&C’s apply. $250 Application Fee, a 1% First Home Loan Premium Fee for First Home Loans and additional credit fees and charges apply. FirstHome Combo T&C’s also apply.
Add up your existing savings.
Now that you have a goal for your deposit, it’s time to look at what you already have. You may already have savings available that can be used for your deposit, such as:
- Savings Accounts
- KiwiSaver Funds
- Investments
Remember that investments may have break costs if you withdraw funds early, and you must leave a minimum of $1,000 in your KiwiSaver account when withdrawing funds for your deposit.
Sit down and add up all your savings to get your existing balance. Your first home deposit may even be closer than you thought.
The Bank of Mum and Dad.
With the rising cost of house prices, many first home buyers are receiving financial support from their families to buy a home.
If you have a family member that would like to help with your deposit they will need to officially ‘gift’ the funds to you.
When gifting funds, the person making the contribution will need to sign a Gifting Declaration form. This form confirms that the funds are not a loan, you’re not required to pay them back, and that the funds will be deposited into your bank account in time for settlement.
If you’re planning on using gifted funds as part (or all) of your deposit, you will need to give a signed declaration to your lender before pre-approval is granted.
Set your savings goal.
It’s time to set your savings goal. Your savings goal should be the amount you need for your deposit, less any existing savings or grants you can access.
It’s important to remember that you’ll also need additional savings for lawyer fees, moving costs, buying appliances, stocking the pantry and all the other hidden expenses of the home buying process, so make sure you have a buffer to cover these (remember you could use your SBS Cash Contribution to help with these).
Once you’ve decided how much you need to save, it’s time to figure out how much you can afford to put aside each week and how long it will take you to reach your goal. Remember: It’s important to be realistic about what you can afford to put aside each pay, while still being able to enjoy the day to day. We all need a night out with friends or a weekend away every now and then.
Open a savings account.
Working to save for a deposit is great, but having your savings working for you? Even better.
To help you reach your deposit goals even sooner you might like to consider opening a savings account. Having a separate savings account for your deposit funds is an easy way to separate your money from your everyday account.
To help decide whether a savings account is right for you, check out our savings accounts and save smarter, not harder.
Create a budget.
Without a plan achieving a goal is tricky, whether it’s running your first marathon or buying your first home. That’s why you should look to create a budget to help you achieve your savings goals.
Once you have a deposit underway, you’re ready for step 2: talking to us about a home loan pre-approval.
The best bank for first home buyers. Again and again.
Canstar has rated us the best bank for first home buyers for the third year in a row. They found we offered better rates, better support and more innovative approaches to getting first home buyers into their first home. But to be fair, we’ve had over 155 years of practice.
Talk to us today about your first home dream
Your first home loan is a big deal. If there’s anything you want to know, or if you want some advice on how to get a loan and how to set them up, give us a call. We’re happy to chat, and we’re on your side when it comes to getting that home.
Or if you’re ready to go, start your application online. You can save it and come back to it any time.
Important information.
The information contained within this web page is factual and general in nature and is not financial advice. You should consider the appropriateness of the information as it relates to you. Our product information webpages may cover deposit products and lending information which may contain some general advice. The product information webpages may also contain information about other investments such as, superannuation and insurance, the content of which is factual information and is not intended to imply any recommendation or opinion about the suitability of any of our financial products for you. If you would like to obtain financial advice, we suggest you speak with one of our Nominated Representatives.