HOME EQUITY SAVINGS

HOME EQUITY SAVINGS

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– Savings product intended for housing loan equity, house improvement, renovation or even purchase of lot. An installment savings with higher interest rate and shall be held or locked for a period of five (5) to ten (10) years.

– You are privileged to be able to buy your own house. Many still cannot afford their first home as the property boom in the country put house prices beyond reach for many first time home buyers. Avail AGDAO COOP Home Equity Savings!

Download Home Equity Savings Form

SAVING FOR DOWNPAYMENT

Here are some tips to help you along:

  1. Open a separate account to save the money and don’t keep your account in the same account you use to pay your bills. The temptation to spend a little “Just this Once” will be strong. Open a separate account that will help you grow your savings. Depending on the amount of risk you are comfortable with you may want savings options that will protect your money but still pay interest, such as Time Deposits and investment savings account.

  2. Make it difficult to access your savings on a whim if you’re an impulse shopper or likely to be tempted to use the money for something else, make it difficult to access. If you have to wait to get to the money, maybe the urge to spend it will pass.

  3. Lock the money into a term deposit/guaranteed investment certificate.Even cashable accounts have restriction on how quickly you can access the money.

  4. A tax free savings account may also be a great way to set money aside.

  5. Choose an account with fees for more than one withdrawal transaction a month.

  6. Don’t give yourself access to the money through an ATM or in-store debit machines. If you have to go into a branch to withdraw the money you’ll have time to consider the purchase.

  7. Control your budget and spending, you can’t save money if you spend all the money you earn. Develop a budget, track expenses and introduce some savings strategies into your daily finances.

  8. Save for other costs; don’t forget there are other costs associated with buying a home so you’ll need to save enough for those as well.

  9. Begin making mortgage payments to yourself; there’s no time like the present to begin working mortgage payments into your budget. You’ll have to pay them at some point so it’s a great way to be sure you can afford them.

  10. Use a mortgage calculator to get a rough idea of how much your mortgage payments will be each month.

  11. Add to that the cost of property taxes and utilities.

  12. If you are currently paying rent, subtract up to the amount of your rent payment.

  13. Calculate the total you would be paying each month.

  14. Put that amount into savings.

  15. Look at the home buyer’s plan; if you are a first time home buyer, the home buyers plan will guide you how much are you going to save for a down payment to buy or build a home.

  16. Talk to a financial advisor about your situation; understand that there are multiple options available to achieve your goal of buying a home and what best fits with your personal circumstances.

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