As the new year rolls in, it’s the perfect time to reassess your financial health, especially if you’re planning to purchase a home or already have a mortgage. Whether you’re a seasoned homeowner or a first-time buyer, a financial reset can set the tone for a successful and stress-free year ahead. Here’s how to get started.
1. Reflect on the Past Year
Take a moment to review your financial performance over the past year. Ask yourself:
- Did I stick to my budget?
- How much progress did I make in reducing debt or saving?
- Were there unexpected expenses that derailed my plans?
Understanding what worked—and what didn’t—can help you make informed decisions moving forward.
2. Set Clear Financial Goals
Define your financial priorities for the year. Some examples might include:
- Saving for a deposit on your first home.
- Paying off credit card debt or personal loans.
- Building an emergency fund.
- Making extra repayments on your mortgage.
Setting SMART (Specific, Measurable, Achievable, Relevant, Time-bound) goals will keep you focused and motivated.
3. Create or Update Your Budget
A well-structured budget is essential for financial success. Follow these steps:
- List all sources of income.
- Outline your fixed expenses, such as mortgage repayments, insurance, and utilities.
- Track your variable expenses like groceries, dining out, and entertainment.
- Allocate funds toward your financial goals, like savings or extra loan repayments.
Digital tools like budgeting apps or spreadsheets can simplify this process.
4. Check Your Credit Health
Your credit score plays a significant role in securing favourable home loan terms. Obtain a free copy of your credit report and check for:
- Errors or inaccuracies.
- Outstanding debts you may have forgotten.
- Opportunities to improve your score, such as paying bills on time or reducing credit card balances.
5. Reassess Your Mortgage
If you’re already a homeowner, consider whether your current mortgage is still the best fit for your needs. Speak with your lending specialist to explore:
- Refinancing options to secure a lower interest rate.
- Switching to a fixed or variable rate, depending on market conditions.
- Using an offset account to reduce interest payable.
A small adjustment to your loan structure could save you thousands over the life of your loan.
6. Build a Savings Cushion
Whether you’re saving for a deposit or aiming to cover unexpected expenses, a robust savings plan is crucial. Automate your savings by setting up regular transfers into a high-interest savings account. Even small, consistent contributions can add up over time.
7. Seek Professional Advice
Navigating finances, especially when it comes to home loans, can be complex. Consulting with a financial advisor or lending specialist can help you:
- Identify tailored strategies for your situation.
- Maximize your borrowing power.
- Plan for long-term financial stability.
8. Stay Committed
Financial success is a journey, not a sprint. Regularly review your progress, adjust your budget as needed, and celebrate small wins along the way. Consistency is key to achieving your goals.
A Fresh Start Awaits
The new year is a blank slate, offering the perfect opportunity to reset your finances and move closer to your homeownership dreams. Whether you’re considering a home loan or already have one, staying proactive about your financial health can make all the difference.
Need assistance with your home loan goals? Contact us today to speak with one of our lending specialists—we’re here to help you make 2025 your most successful year yet.
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This article is prepared based on general information. It does not take into account individual financial objectives or needs and is not financial product advice.