As a plasterer in Australia's thriving construction industry, you've got the skills to build beautiful walls and ceilings. But when it comes to building your savings for your first home, the process might feel less familiar. The good news is that your trade skills put you in a strong position to achieve homeownership.
Understanding Your Financial Situation
Before diving into saving strategies, take stock of where you stand financially. Your income as a plasterer can vary depending on whether you're employed, subcontracting, or running your own business. This variability doesn't disqualify you from buying a home – it just means you need to approach your application process differently.
Home Finance & Mortgage Brokers who specialise in trades understand these income patterns. They can access Home Loan options from banks and lenders across Australia that recognise the earning potential of skilled tradespeople like yourself.
Setting Your Savings Target
When buying your first home, you'll typically need:
• A deposit (usually 5-20% of the property price)
• Stamp duty (varies by state)
• Legal and inspection costs
• Moving expenses
• Emergency fund for unexpected costs
If you can't save a full 20% deposit, don't worry. Many first time home buyer programs allow smaller deposits, though you may need to pay lenders mortgage insurance (LMI). This insurance protects the lender if your loan to value ratio (LVR) exceeds 80%.
Smart Saving Strategies for Plasterers
Separate Business and Personal Expenses
If you're self-employed, keeping clear bank statements showing personal income separate from business expenses will strengthen your home loan application. Lenders want to see consistent income patterns, and organised finances demonstrate reliability.
Take Advantage of Busy Periods
The construction industry has natural peaks and quieter periods. During busy times when you're earning more, resist lifestyle inflation and channel extra income directly into your home deposit savings account.
Consider an Offset Account Early
Even before you get your first Home Loan, you can open a high-interest savings account that works similarly to an offset account. This keeps your savings growing while you build your deposit.
Government Support Available
As a first-time buyer, you may be eligible for various government benefits and packages:
• First home owner grants (FHOG) – available in most states
• Stamp duty concessions or exemptions
• First time home buyer schemes that reduce deposit requirements
These programs can significantly reduce the amount you need to save, making homeownership more achievable sooner than you might think.
Getting Pre-Approved
Once you've built some savings, consider getting pre-approved for a home loan. This process helps you understand your borrowing capacity and gives you confidence when looking at properties. Pre-approval also demonstrates to sellers that you're a serious buyer.
Working with brokers who have access to banks and lenders nationwide means you're not limited to just the major banks. Many smaller lenders offer competitive packages specifically designed for tradespeople, often with interest rate discounts or more flexible assessment criteria.
Choosing Between Fixed and Variable Rates
When applying for a home loan, you'll need to decide between fixed interest rate and variable interest rate options. Fixed rates provide payment certainty, which can be valuable if your income varies seasonally. Variable rates might offer more flexibility and potentially lower costs over time.
Your mortgage broker can help you understand which option suits your specific circumstances, or whether a combination of both might work for your loan amount.
Investment Opportunities Down the Track
Once you've secured your first home, you might consider investment loan options in the future. Many successful tradespeople build wealth through property investment, using their first property's equity to fund their first investment property. However, focus on buying your first home before exploring investment loan application processes.
Making Your Money Work Harder
While saving for your deposit:
• Review your expenses regularly – small changes add up
• Consider taking on additional weekend or evening work
• Look into whether your employer offers salary sacrificing options
• Avoid new debt that could affect your borrowing capacity
The Property Market and Timing
Don't try to time the property market perfectly. Instead, focus on your personal readiness – having stable income, solid savings, and clear financial goals. The property market will always have ups and downs, but your need for a home remains constant.
Streamlined Application Process
When you're ready to apply for a home loan, working with specialists in trades finance can make the application process more efficient. They understand your industry, know which lenders are most favourable to tradespeople, and can present your application in the most positive light.
Your journey from saving for your first home to holding the keys doesn't have to be overwhelming. With the right planning, professional guidance, and commitment to your savings goals, homeownership is absolutely within reach.
Call one of our team or book an appointment at a time that works for you to discuss your specific situation and create a personalised savings and finance strategy.
