Saving for a Down Payment? Tips for Success

Saving for a Down Payment?

ZUNE TH

S AT TA R

Saving for a Down Payment? Tips for Success Zuneth Sattar

Owning a home is an achievable milestone made possible by having an adequate down payment. Saving for this down payment can seem overwhelming, unless the entire amount is broken down into smaller goals. With the right tips, saving for a deposit can happen sooner.

Find Out How Much is Required As a down payment is the upfront money paid to get a home loan, different lenders have different expectations of this payment, often expressed as a percentage of the home price. Determining how much is needed is the first step to getting organised.

Have a Multi-tiered Saving Approach With a down payment amount in mind, implement various saving hacks to reach the target. From setting up automatic savings transfers to saving bonuses and raises, there are multiple ways to save money rather than spend it.

Individuals who start saving fast will also build the momentum to keep the balance growing bigger.

Save in the Right Account Some people consider investing their down payment savings in the stock market in the hopes of growing it at a faster rate. While it’s an option for someone looking to buy a home in eight to ten years, the stock market is too volatile for shorter periods. Money market accounts are a better option.

SOME PEOPLE CONSIDER INVESTING THEIR DOWN PAYMENT SAVINGS IN THE STOCK MARKET IN THE HOPES OF GROWING IT AT A FASTER RATE.

While it’s an option for someone looking to buy a home in eight to ten years, the stock market is too volatile for shorter periods.

Money market accounts are a better option.

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