5 Ways First-Time Homeowners Can Increase Their Deposit Down Payment

First-time home buyers will be required to overcome many hurdles before settling into a dream property. None is more formidable than the current housing market within many portions of Australia. Being able to access additional capital to increase a down payment is critical for those who hope to obtain amenable mortgage rates. Let us look at five ways in which this can be accomplished.

1. Cash ISAs

A cash-based individual savings account (ISA) is a great place to begin. This is due in no small part to the fact that you are able to place up to £20,000 pounds within this account during the fiscal year. You can opt for either a fixed-rate ISA or a variable-rate plan. Notwithstanding the tax benefits associated with such a strategy, these funds can be accessed in the event that they are suddenly required.

2. Online Investing

Many first-time buyers are eager to tap into the liquidity associated with the online investment market. There are several advantages associated with such a move. These include:

  • The ability to access an account through a mobile device.

  • The presence of thousands of unique underlying assets.

  • Low fees and commissions.

  • Excellent levels of customer support.

It is always a good idea to check CMC Markets for updated stock brokerage rates before you get started. The chances are high that you will find amenable offers as well as a host of options to choose from.

3. Easy-Access Accounts

This is a particularly useful suggestion if you happen to plan on buying a property within a year. Easy-access accounts allow you to tap into these funds if the need arises. However, they are not the same as a standard debit account. The interest that you will be able to earn is appreciably higher. Some are offering as much as 2.00 per cent AER (2). As always, be sure to compare different institutions in order to discover which offer the best choices.

4. Fixed-Rate Bonds

This option is more relevant for those who might plan on purchasing a property within the next five years. The most obvious advantage with this type of plan is that bonds pay at fixed and predictable rates. So, you will be able to accurately determine your returns years in advance. The only potential sticking point is that you will not be able to access the initial amount that you deposited. Still, fixed-rate bonds are an excellent factor to keep in mind.

5. Standard Savings Accounts

Finally, standard savings accounts can represent viable vehicles to employ. They are able to provide better interest rates when compared to checking or debit accounts. Still, the funds are well within your reach. While you will be subject to early withdrawal fees, the chances are high that your bank already offers a savings account. As a customer, you are likely to be provided with several perks. Speak with a representative to learn more about your options.

Purchasing a home for the first time can represent a life-changing experience and above all, we need to realise that this is one of the most important investments that you will ever make. It therefore makes sense to start off on the right financial “foot”.