Home Guarantee Scheme - Navigating genuine savings
Stepping into the world of homeownership begins with understanding the concept of genuine savings and securing pre-approval for your home loan. Genuine savings are a testament to your financial discipline, showcasing your ability to save and manage funds over time. This is an essential factor for many lenders under the Home Guarantee Scheme as it demonstrates your commitment and reliability as a borrower.
Examples of what counts as genuine savings
Savings accumulated over a minimum period of one to three months.
Term deposits held over a minimum period of one to three months.
Investments in shares or managed funds, maintained for a period of one to three months.
Holding cash gifts or inheritance funds for a similar period.
Contributions through the First Home Super Saver Scheme
Evidence of timely and full rent payments for at least three months
Remember, each lender may have unique definitions and requirements when it comes to genuine savings. It's crucial to check with your chosen lender to understand their specific criteria.
Creating a strategy for genuine savings
Begin your journey to homeownership with a solid savings plan. At Buyvest, we’re here to guide you through creating a strategy for building genuine savings, a crucial step towards meeting the Home Guarantee Scheme (HGS) requirements.
Assess your current savings:
Start by taking a close look at your existing savings and investments. This initial assessment will help you understand if you're already meeting the 5% genuine savings threshold required under the HGS.
Setting your savings goal:
If your current savings fall short of the 5% mark, it’s time to set a clear savings goal. Determine how much more you need to save and establish a realistic timeline to reach this target.
Crafting a budget to boost your savings:
A well-planned budget is your roadmap to increasing your savings. Track your income and expenses diligently, and identify areas where you can reduce expenditure that will free up more funds to contribute towards your genuine savings.
Automating your savings journey:
Make saving effortless by setting up an automatic transfer to a dedicated savings account. This ensures you're consistently adding to your genuine savings, making it easier to reach your goal.
Monitoring your savings progress:
Regularly check on your savings progress. Adjust your budget and savings plan as needed to stay on course. This ongoing review process will keep you aligned with your homeownership aspirations.
After reaching your savings goal:
The next step is to approach Buyvest to confirm that your savings align with the HGS criteria. Apply for pre-approval to understand your borrowing capacity. This pre-approval can be a key to securing a spot in the Home Guarantee Scheme.
Why choose Buyvest?
Our commitment at Buyvest is to make your home buying process as smooth and stress-free as possible. We understand the nuances of the Home Guarantee Scheme and are here to provide tailored advice and support. Reach out to us today, and let’s take the first steps towards unlocking the door to your dream home.
Table of Contents
A clear and practical guide to building genuine savings for first home buyers.
Buyvest makes the process easier with expert support every step of the way.
Important stuff:
Please note that the views and opinions expressed in this post are general information only, and this is not financial advice.
Any advice and information is provided by Buyvest Pty Ltd ABN 91 684 841 496, Australia Credit Licence No. 567392 and is general in nature, for educational purposes only and is not intended to constitute specialist or personal advice. This website has been prepared without considering your objectives, financial situation or needs. Therefore, consider the appropriateness of the advice for your situation and needs before taking any action. It should not be relied upon to enter into any legal or financial commitments. Specific investment advice should be obtained from a suitably qualified professional before adopting any investment strategy. If any financial product has been mentioned, you should obtain and read a copy of the relevant Product Disclosure Statement and consider the information contained within that Statement concerning your circumstances before deciding whether to acquire the product. You can obtain a copy of the PDS by emailing hello@buyvest.com.au. If you want to change your financial circumstances, such as applying for a loan, all loan applications are subject to credit approval.
All information on this website is subject to change without notice.
