The first step onto the property ladder is often the hardest. You haven’t had the opportunity to build equity yet. And you may be struggling against today’s tough economic climate as well. But there are steps you can take to make owning your own home a dream come true sooner rather than later. Here are our tips on how to own your own home sooner.

How to own your own home sooner

Tip 1: Save!

When asking yourself how to own your own home sooner, the first question you have to deal with is how to save for a house deposit. In fact, having a deposit is the most important first step to getting into a new home.

If you can, try to put 10% of your income aside each payday. This may mean cutting back substantially in other areas of your life. For example, you might try limiting streaming services, nights out and takeaways. As you pay off debts, you can continue to set aside the money into a savings account. And you can even try to sell extra household property that you don’t need anymore.

This may feel like a bit of a strain. But it will be worth it when you walk through the front door of your own home for the first time.

Tip 2: Reduce your debts

The next tip is to make sure that your finances are in order. In general, the sum of all your debts shouldn’t be more than one-third of your monthly income (this includes your potential mortgage).

Reducing your debts makes you more attractive to potential lenders who see you as a good risk for their business. In addition you’ll want to refrain from taking on new debts and create a monthly budget that you stick to.

Tip 3: Rethink your future home

It’s human nature to want the best and our homes are no exception. However, when you’re looking at how to own your own home sooner, it’s a great idea to consider potential compromises. Can you buy a slightly smaller home? What about an older home? Have you considered a renovator that you might be able to do some work on? Or what about buying a townhouse or unit?

These compromises might not feel great at first. But consider how they’re just a stepping stone to the ultimate home of your dreams

Tip 4: Watch out for risky properties

Along with considering the ways you can compromise on your future home, you’ll want to avoid risky properties. While every lender will have its own criteria, these could include ‘off-the-plan’ homes, studio apartments, serviced apartments and homes in tourist towns. These types of properties could hold you back from getting a mortgage and slow down your future home purchase.

Tip 5: Consider up-and-coming suburbs

Suburb property moves in cycles. Young couples and new families often buy in newly developing areas and suburbs. Then, as the families in that area grow, the household grows and there is a corresponding rapid development in the suburb. After that initial growth, these households – and the suburbs they live in – can begin to age. And this creates a shifting demand on required services and facilities, the types of dwellings in place, the amount of renovations and more.

Have a look at suburbs that are perhaps just beginning a new upswing. That is older households moving out and new families moving in. You’ll often see home renovations beginning and even new services (such as childcare centres) being built. If you can get in at the right time, you can get more home for less.

Tip 6: Think about family support

From deposit help to guarantees, many families are happy to help out when it comes time to buy a home. While this may not be everyone’s first choice, it’s a great way to get a leg up when you’re working out how to own your own home sooner.

Tip 7: Seek pre-approval

Getting pre-approval is an excellent option and can help when you’re wondering how to own your own home sooner. This process allows you to find out exactly how much a lender is willing to lend to you. And that means that you’re in a good position to move quickly and find the right home for your requirements.

BONUS TIP: Get home loan support today!

No matter where you are on your property buying journey, our team is here to help. With our home loan support we’re here for advice and support that will see you owning your own home sooner.

Get in touch with our expert team and get a free personal home loan assessment today!