Could 2018 be your<\/em> year? The year you finally crack the property market?\u00a0<\/strong><\/p>\n Market trends and property data will only get you so far; first you need to be in a position to part with the cash.<\/p>\n Paul Thomas, CEO of Gateway Credit Union, shares how high-interest savings accounts, paying down your debt and obtaining a good credit score could help you get into property numero uno<\/em> before the year\u2019s out.<\/p>\n Let\u2019s approach this step by step.<\/p>\n Let\u2019s be real, if you\u2019re saddled with debt it\u2019s unlikely you\u2019re going to be able to save for a home.<\/p>\n Paul says reducing any debt \u2013 from personal loans<\/a> to those you incur on your credit card \u2013 can help you in more ways than one before purchasing a home.<\/p>\n \u201cIt puts you in a better position as a borrower when you apply for a home loan,\u201d he says. \u201cLenders will assess you on a range of factors, and your debt level is one of these.\u201d<\/p>\n \u201cThe less debt you have, the more cash flow you\u2019ll also have to put towards mortgage<\/a> repayments. It\u2019s simple: The less debt you have, the better position you\u2019ll be in financially.\u201d<\/p>\n Thinking about the dream home won\u2019t bring it any closer \u2013 that starts with saving. Picture: realestate.com.au<\/p>\n<\/div>\n When saving for a deposit, it\u2019s crucial to not only pay down your debt but to have a regular savings plan, Paul explains.<\/p>\n \u201cSaving a deposit doesn\u2019t happen by accident \u2013 you have to be organised and consistent,\u201d he says.<\/p>\n The first step is to analyse your finances and work out a budget.<\/p>\n \u201cA budget should help you identify where your money goes in any given month and where you can make small cost-cutting measures,\u201d Paul says.<\/p>\n \u201cThis will also allow you to have a realistic idea of how much you can put away every week,\u201d he adds.<\/p>\n Debt-free and fancy free? Not a chance.<\/p>\n Once your hard-earned is going into your<\/em> bank account \u2013 not your credit card \u2013 it might be tempting to spread your wings a bit.<\/p>\n Well rein it in, because it\u2019s actually a much better time to start building up your genuine savings.<\/p>\n Opening up a term deposit could help you lockdown your savings. Picture: Getty<\/p>\n<\/div>\n You might have heard the terms \u2018high-interest savings account\u2019 and \u2018term deposit\u2019 float around before, but how can these actually help you?<\/p>\n \u201cHigh-interest savings accounts and term deposits are intended to boost your savings by offering interest on the money you hold in them,\u201d Paul says.<\/p>\n \u201cUnlike an everyday transactional account, these products generally have no account-keeping fees.<\/p>\n \u201cA term deposit also provides the added benefit of locking your savings away for a specified term, which means you\u2019re less tempted to dip into your savings for impulse purchases.\u201d<\/p>\n If you\u2019re looking to build a deposit for a home, these types of products could provide a huge helping hand. Essentially, they make your money work harder by earning interest on your savings, helping you to boost your savings more quickly.<\/p>\n If you\u2019re not confident you\u2019ll remember to regularly deposit money into your new savings account, Paul says you could look into setting up a direct debit from your everyday account to your savings account.<\/p>\n What the heck is a credit score, we hear you ask?<\/p>\n Essentially, it\u2019s a number that is calculated based on the information in your credit reports that lenders<\/a> will use to determine your reputation as a borrower. The higher your score, the more attractive you could seem to potential home lenders when applying for a loan.<\/p>\n It\u2019s easy to check your credit score online. Picture: Getty<\/p>\n<\/div>\n \u201cLenders may use this information to decide if lending you money [to buy a home] is worth the risk,\u201d Paul says.<\/p>\n \u201cThings like the type and size of credit you request on your loan applications; paying your bills on time; not applying for too many credit cards; paying off outstanding loans and credit card debt; or your employment history can all impact your overall credit score,\u201d he says.<\/p>\n If you haven\u2019t ever looked up your credit score, now is the perfect time to do it.<\/p>\n You\u2019re entitled to one free copy of your credit report every 12 months from each of the three nationwide credit reporting companies, such as Equifax, Dun and Bradstreet and Experian.<\/p>\n If the number comes back high \u2013 congratulations. You\u2019re one step closer to that #dreamhome.<\/p>\n Have a read of Gateway\u2019s free First Home Buyer\u2019s Guide for more tips.<\/em><\/p>\n \u00a0<\/p>\n
\n <\/p><\/div>\n Realestate au <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Step #1: Pay down your debt<\/h2>\n
![\"Darlinghurst](\"https:\/\/i0.wp.com\/www.realestate.com.au\/blog\/images\/1024x768-fit%2Cprogressive\/2018\/01\/16175641\/Darlinghurst-home-2000x1500-1024x768.jpg?resize=1024%2C768&ssl=1\")
<\/p>\nStep #2: Budget to save<\/h2>\n
Step #3: Fast-track your savings<\/h2>\n
![\"Girls](\"https:\/\/i0.wp.com\/www.realestate.com.au\/blog\/images\/1024x768-fit%2Cprogressive\/2018\/01\/16175120\/Girls-looking-at-computer-2000x1500-1024x768.jpg?resize=1024%2C768&ssl=1\")
<\/p>\nStep #4: Check your credit score<\/h2>\n
![\"Girl](\"https:\/\/i0.wp.com\/www.realestate.com.au\/blog\/images\/1024x768-fit%2Cprogressive\/2018\/01\/16175228\/Girl-checking-phone-2000x1500-1024x768.jpg?resize=1024%2C768&ssl=1\")
<\/p>\n