A down payment on a house is one of the biggest investments you will save for in your lifetime. If you’re saving up for it on your own, it can be difficult – especially with the recent increase in home prices. But you don’t have to feel as if you’re always two steps behind – you can get there. You just need to exercise some self-discipline and a little creativity to reach your goal. Here are the 5 best ways to save for a down payment so you can get into your dream home as soon as possible.
Set Up Automatic Payments
First things first – set up the highest interest savings account possible. Having automatic withdrawals go into your savings account is really one of the best ways to save for a down payment. This method builds discipline and is the best way to ensure that the money intended for your down payment doesn’t get spent on other things.
Get a Second Job
One of the best ways you can save for a down payment is to take on a second job. Even just finding a job that you can tack on some weekend hours, can help put that extra money in your account to help you reach your goal sooner.
Deposit Your Bonuses
Any yearly work bonus, tax refund, or extra money generated from a promotion, should go directly into your down payment savings account. These lump sums may not seem like a lot at first, but over time they can really add up fast, getting you into your dream home faster.
Use Your RRSP
If you’re a first-time home buyer, you can use the government’s Home Buyers Plan to take out money that is saved in your RRSP to use towards your down payment. Not only will it not be taxed, but you will have a 15-year period to pay back the money with zero consequence.
Utilize a Staycation
That yearly trip you take often costs thousands of dollars that could otherwise be put towards your down payment. Until you purchase your home, opt for staycations instead so you can save for a down payment. Activities like camping, a week visiting family, or time just relaxing around the house, can help you reach your goal sooner than later.
You will be surprised at how much money you can save for your down payment when you utilize a little self-discipline and keep your money in the bank. By getting your savings into gear, you can be in a new home much sooner than you think. If you would like to explore your options or create a financial strategy, talk to us at The Financial Forum – we can help you get your finances in order to pursue your home-ownership goals.