Your Your Your   Three ways to save for a home deposit  / Dec
14, 2012 7:18AM / Print / ()  Three ways to save for a home
deposit  One of the biggest mistakes I see first home buyers
make is not saving enough for their deposit, or even purchasing
their first home with no deposit. While this has been occurring
less in recent years, broadly speaking it's still an issue.
There are a couple of problems that stem from not saving much of
a home deposit. Firstly, without developing a disciplined
savings habit you'll potentially find it very challenging to
meet your ongoing mortgage commitments, as you're simply not
used to having to put away this kind of money every month.
Secondly, if you do have less than a 20% deposit, you'll incur
what's referred to as Lenders Mortgage Insurance, an additional
expense you'll need to cover in order for the bank to approve
your loan. Now, many people just cop this expense on the chin,
but it's purely wasted money and, combined with the Stamp Duty
payable on all property purchase