Building your deposit with the help of a side hustle

According to the Australian Bureau of Statistics (ABS), the number of working Australians with second jobs is at record high levels. While an extra gig can boost your house deposit, there are a few things to consider.

Set a realistic goal

To help determine how much of a deposit you’ll need to save, understanding your borrowing power is a smart first step. For example, if the maximum you can borrow based on your income is $450,000 then this information can help you create your savings target.

Assemble expertise

While there are calculators available online that can help you crunch the numbers, nothing beats getting expert advice to set you up properly from the get-go.

A mortgage broker can support you to understand your borrowing power, the various costs associated with buying a home and the minimum deposit accepted by different lenders.

Depending on the structure of your side hustle, check your tax obligations with the ATO to ensure you’re compliant. These important considerations can help you stay informed and motivated when working toward your savings goal.

Develop awareness of innovative lenders

From weekend jobs, babysitting or housesitting to rideshare gigs, every bit of extra income can help build your deposit. You could sell items through online marketplaces, freelance, rent out pieces in your wardrobe, pet sit or become a mystery shopper.

While any extra income helps to boost your deposit, it’s important to keep in mind that not all lenders will accept income from a side hustle when calculating how much you can borrow. However, there are specialist lenders like Liberty that will take a more free-thinking approach when determining your ongoing income to support a new loan.

Construct a plan and act early

A free-thinking Liberty Adviser is well placed to help you understand your options and open the door to more possibilities. Start your plan the right way and get in touch today.