How to Save for a Mortgage as a First Time Buyer
So, you’ve decided to take the leap and get a mortgage – and the first thing on your list is saving for your deposit. Need some advice on reaching your goal? We’ve compiled a few practical tips to help you.
Have Something to Aim For
Set out a target at the start of your mortgage journey, and you’ll find it much easier to get where you want to be. Use our simple Mortgage Calculator to get an idea of what your monthly repayments will be and how much you’ll need for a deposit, then calculate your new weekly budget based on that. Be practical about what you can afford to save and make sure you’re not left short. To make things easier on yourself, you should also set up a savings account. At AIB, we offer a choice of savings accounts to suit your lifestyle, so why not start saving today?
Plan Ahead and Save Money
Having a plan is the strategy of any saver. Sometimes we end up overspending on impulse buys and generally spending where we shouldn’t. My Money Manager is a great financial management tool that we have available on AIB Internet Banking. It separates out your everyday expenses into various categories so you can quickly and accurately see where you’re spending your money, and how you can make reductions which will help you save in the long term. It’s good to specify a regular time each week where you can sit down and make sure you’re sticking to your plan. If any bad habits are starting to creep in, you’ll be able to identify them quickly and you won’t get too far off track.
A Little Goes a Long Way
Rather than thinking about cutting things out of your life, consider how you can make little changes to save money.
To make sure you don’t pick up unnecessary items when you’re in the supermarket, list out exactly what you need before you go. Break up the week by creating a simple meal plan and then stick to it. You’ll no longer be spending money on spontaneous purchases and you’ll be eating healthier too.
If your circumstances mean you are working from home more than usual, that’s probably going to be good for your finances. Less eating out means you spend less on lunches and coffees. And all these little things add up to something big over time. You may even wonder where all your money went before you had to work from home. It makes for some insight into how we manage our money.
But saving money doesn’t mean have to give up eating out entirely. If you do a little bit of research on restaurant deals and early bird menu’s, you’ll find that it’s a great feeling to get out and enjoy a restaurant meal every now and then.
If your work means you commute, why not combine it with a bit of healthy activity? As any driver knows, the costs of owning and maintaining a car can quickly mount up. Try walking more often instead of driving, or swap the four wheels for two where you can. You’ll save on petrol. Not sure where to start? Check out online sources for a cheap second-hand bike or if you’re in Dublin, Cork, Galway or Limerick, you can also take advantage of the cities’ public bike schemes.
Are You Saving for a Mortgage?
If you need advice on any stage of your mortgage journey, our expert AIB Mortgage Advisors are here to answer your questions. Book an appointment with your local Mortgage Advisor now or find out more here.
Allied Irish Banks, p.l.c. is an authorised agent and servicer of AIB Mortgage Bank in relation to the origination and servicing of mortgage loans and mortgages. Allied Irish Banks, p.l.c. and AIB Mortgage Bank are regulated by the Central Bank of Ireland. Copyright Allied Irish Banks, p.l.c. 1995.