It is very confusing when it comes to savings for a new home but savings are essential. Bu the problem is how to save for paying off your homeloan. In first place you need to search for a savings option that suits the time within which you need your money to mature or withdraw at the time you take a loan and you can shop for the best products with best rates at least 10 years before you buy a house as that will convince the bank of your creditworthiness and they will lend you a good amount. You can go for unit trusts, bank savings and government bonds.
Your savings burden will reduce if you plan to buy a house with a partner so that the paying-off of loan gets divided and you are not the only person who gets chained down with no savings after buying a home. As per Jocelyn Newmarch:
Because two people will be sharing the costs, the bank views you as a better risk and is more willing to grant a loan. Property is expensive; many people wouldn’t be able to afford to buy on their own.There are risks in such a partnership investment, but you can afford to handle risks at personal level.
