6 Ways Mums Can Save More for Their Mortgage

Saving for a deposit or paying off a mortgage is harder than ever before, especially for mums. If you’re a stay at home mum or working part-time, it can seem impracticable to save enough money for a mortgage on top of all other expenses. When we consider that house prices have outstripped wage growth and tighter lending regulations require huge deposits, it’s easy to become unmotivated when looking for ways to save money for the sake of your mortgage.

[  photo: pexels.com by Daniel Frank ]

Nonetheless, there are a few alternative ways that can help mums save for their mortgage that don't involve working double shifts or giving up life’s luxuries. Take a look at six ways mums can save for their mortgage below.

Reconsider Health Insurance Policies

Up first comes the insurance policies that could be gouging your bank account. If you’re a young mum who’s fit and healthy, there’s a good chance that you don’t need to be spending upwards of $2,000 on hospital and extras cover alone. These premiums can be reduced, or removed completely, giving you extra cash to funnel into a home loan deposit.

Consider an entry-level health insurance policy and reroute the savings directly into a long-term home loan deposit account.

Rent an Empty Room in the Home

A more alternative way to earn some extra money for your mortgage is renting out empty spaces in the home. If you’re already paying off your home loan and are looking for some extra income to make those dreaded monthly loan payments less of a drag, then check out platforms like Spacer.

Using Spacer you’re able to find local residents who need some extra space for their belongings. They'll be able to rent out your spare bedroom, garage or office. You’ll make some cash on the side and not have to give up any of your spare time to do so.

Cancel Those Unused Subscriptions

If you have ever taken a look into your bank statement or an iTunes invoice there’s a good chance you’ve spotted a whole array of charges. When you’re saving for a mortgage or paying one off, it’s time to cut these unnecessary subscriptions - especially the ones the kids accidentally signed up for.

Scour through your bank statements and look for any subscriptions you’ve forgotten to cancel and cut them off. There are also apps that can search your subscriptions for you to make the process a little bit easier. The most common culprits are fitness apps, news subscriptions as well as free trials that automatically renewed. Another alternative is to find cheaper digital alternatives to existing expenses. For example, a Netflix subscription paired with VPN to access their various regional databases is far cheaper than most cable tv packages.

Create a Mortgage Focused Budget

To make the most of this step, it’s best to have an idea in mind - or know exactly - how much your home loan deposit will need to be. From there, reverse engineer a budget that leaves you with your desired deposit amount and this way you’ll have completely structured all spending to focus on ballooning your mortgage deposit.

St. George Bank has a fantastic home loan deposit guide if you want to make calculating your home loan deposit and fees are a lot easier.

Consider Having Family Nights at Home

If you’re someone who loves to make it a tradition to see a movie at the cinema once a week, or go out to a restaurant for dinner a few times a month, it might be time to cut back for the time being. It will pay off when your mortgage becomes easier to pay, or your deposit account fills up quicker.

Consider having the family at home, rent a movie on iTunes or Google Play and make the snacks yourself. If you’re a family of four to six you could be saving over a hundred dollars a week just by keeping family movie nights and dinners at home.

Lower Your Electricity Use

In Australia, there’s one thing that takes the biggest toll on our wallets and that’s electricity use. For singles, electricity bills are sky high but when families are concerned, electricity bills are arguably outrageous. That said, our final tip here is to do everything you can to cut your electricity use.

Inform the kids that leaving lights, fans, air conditioners, and other appliances on is a big no-no and the same goes for the adults. Make turning off all appliances and outlets a new habit. This way you’re actively reducing your expenses and able to pay off your mortgage more easily, or boost your deposit.