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5 Tips to Help You Save for a Down Payment Faster

Last updated on May 11th, 2021 at 12:56 pm

There’s no better time to buy your first home than when interest rates are low and the market is hot. And even when you don’t have enough money in the bank for a down payment, there are things you can do to help accelerate the process. To get in your dream home sooner than later, follow these 5 tips to help you save for a down payment faster.

Automate Monthly Savings

If you’ve been trying to put a little money here and there into your savings account, you’re probably no closer to your goal then when you first started. To really save fast, you need to automate your payments and lock them into an account that you can’t touch. This will keep you disciplined with your money and help you build up money much faster. Try starting with as little as 10% a month of your income, and slowly adjust over time until you start to feel a pinch on your day-to-day expenses. Once you’ve obtained the appropriate level in which you can still live comfortably and barely notice the reduction, set that amount and watch the savings grow.   

Get Frugal

There are also a number of ways to cut down on your expenses to help you save faster for a mortgage. Like that annual trip you take each year down south. Maybe this year you can go camping or take advantage of a stay-cation to save big. Perhaps you can ride your bike to work instead of driving a few times per week to save on parking and gas costs. You can even try to shop at a different grocery store, get rid of that gym membership you never use, switch phone providers, or avoid buying new clothes this year to save some money that you can add to your savings account.

Utilize your RRSPs

If you’ve already been saving for your retirement, you can transfer those savings over to help you finance your first home. In fact, it’s a program called the Home Buyers Plan. It allows you to take out the money you’ve saved in your RRSP and use it towards your down payment with zero tax consequences. What’s the catch? You will have a set monthly fee that you will need to pay back. But don’t worry since you’ll have 15 years to pay it back into your RRSP in full.

Work More

One of the fastest way to boost your income quickly is by taking on some extra shifts at work or getting a second job. It’s not everyone’s favourite way to save, but it’s an extremely effective way to get more money fast.

Talk To A Financial Planner

Having a solid savings plan in place is key. That’s why talking to a professional who understands all the financial instruments that can be utilized to help you save faster, is crucial. They’ll help you set an appropriate budget, give you some handy strategies to save, and set you up an account to save faster.

You’ll be surprised at how much money you can save for your down payment when you getting your savings into gear. If you would like to learn more and explore all your mortgage options, talk to us at Geoff and Bobbie McGowan. We can help you get a clear picture about your current and future finance needs in order to pursue your home ownership goals.