Make 2025 your best Homeownership year yet with these 8 Financial Resolutions

By Bradd Bendall

Finance

Buying a home is a major investment. These practical tips will help you optimize your finances and take advantage of the current lower prime lending rate, whether you’re buying in 2025 or planning ahead.

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Buying a home is a major investment that requires thoughtful financial planning. Whether you’re looking to purchase property in 2025 or aiming to optimise your finances for better homeownership opportunities, these practical tips will help you stay on track and make the most of the current lower prime lending rate.

1. Know Your Budget

Before you dive into property searches, understand exactly how much you can afford. Use BetterBond’s online affordability calculator to estimate your monthly repayments based on your income and expenses. Always aim to spend slightly less than the calculator suggests to provide room for any fluctuations in the prime lending rate. This ensures you’re not stretching your finances too thin.

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2. Get Your Finances in Order

Once you know what you can afford, focus on reducing non-essential spending. Buying a home comes with various costs—transfer fees, conveyancing, insurance, and more. Set up an automatic savings plan to build up financial reserves, ensuring you’re prepared for these additional costs.

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3. Clean Up Your Credit Score

Your credit score plays a crucial role in securing a bond. Ensure there are no outstanding arrears and that all bills are paid in full and on time. While it’s important to settle accounts, avoid closing them. Keeping a small amount of open credit demonstrates financial responsibility. You can check your score through reputable providers like Experian or Credit Score. Bond originators can also help you secure the best interest rate by submitting your application to multiple banks.

4. Save for a Deposit

Although it’s possible to secure a 100% bond, saving for a deposit can reduce your home loan burden significantly. A deposit lowers the household income needed to qualify for the bond, while also reducing your monthly repayments. A larger deposit also increases your chances of getting approved and may help you secure a lower interest rate by lowering the risk profile for banks.

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5. Get Online Pre-Approval

Applying for pre-approval is a smart move that speeds up the bond application process when you're ready to make an offer. BetterBond’s pre-approved clients enjoy a 95% approval rate, boosting your chances of success when submitting your application to multiple banks.

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6. Protect Your Assets

Most banks provide basic insurance for your home, but it’s worth shopping around to ensure you have the best cover. Compare premiums, excesses, and exclusions to make sure you have adequate protection for your home’s structure, fixtures, and fittings. It’s also important to ensure that your home is insured for its full value. If you’re unsure, consider having your property independently valued.

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7. Use Your Bonus Wisely

If you receive a 13th cheque or annual bonus, consider applying it towards your bond. Extra payments can significantly reduce the interest paid over the loan's lifetime. For example, paying an additional R1,000 a month on a R2 million bond can save you over half a million in interest and shorten the repayment term by three years.

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8. Set Up an Emergency Savings Fund

Homeownership comes with both initial and ongoing expenses. Beyond the costs of buying a home—like transfer duties and moving costs—there are maintenance and repair expenses to consider. Set up an emergency savings fund to cover unexpected costs, ensuring you’re financially prepared for the inevitable repairs and maintenance your property will require.

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By committing to these financial resolutions, 2025 can be a year of successful homeownership or property investment.