Are you considering buying a new home or investment property in the near future? If so, saving a down payment can be a challenge. But think of it this way: If
you can discipline yourself to regularly set aside funds until you have a down payment, you’ll probably have no problem making the mortgage payments. Here’s how to get started.
1. Set a goal
Research the housing market, and decide what you can afford.
2. Determine the Required down payment
Determine the required down payment, and set the amount as your goal.
3. Open a savings account
Open a savings account specifically for your down payment.
4. Keep a budget
Keep a budget. Make sure it includes monthly payments to your down payment account, and elminate unnecessary purchases.
5. Live below your means.
I know this kinda goes without saying, but consider eating out a little less, and eating at home more often. Put off expensive vacations, and if possible, take public transit instead of using yourveh icle.
6. Consider getting a part-time job or starting your own home-based business
Consider getting a part-time job or starting your own home-based business and deposit your earnings in your down payment account.
7. Direct all unexpected revenue to your down payment
Direct all unexpected revenue to your down payment including raises, bonuses, tax refunds, and inheritances.
8. Pay off debt.
Again, this kinda goes without saying, but it makes a big difference. It’ll take extra funds at first, but over the long term, your interest savings can bump up your down payment.
9. Consider using your RRSP to help with your down payment.
And, last but not least,
10. Consider setting your sights lower.
Now here’s what I mean by that: If you’re renting right now, and saving is taking too long, consider a lower-cost home. Once you’re in the market and building equity, you can always move up.
For more information on creating financing strategies or how to save more for your down payment, call us today.