Sometimes saving for a down payment can seem overwhelming and next to impossible. No matter your current financial situation, spending habits and income level, if you create the right plan for yourself you will get there eventually. It may not be a fast and glorious path but the benefits of homeownership will outweigh the temporary sacrifices you make to get there.
Here’s some tips for creating habits that will help you save up for your down payment as fast as possible:
- CREATE A BUDGET & STICK TO IT!
Sit down and take a look at your income vs expenses. If there are any expenses that you can cut to save a little bit of money do that! Give yourself a preset amount that you can use for extra spending each month and put the rest into savings. Keep an eye on your spending as time goes on – a budget will only work if you can be disciplined and stick to it. You may need to cut out some luxuries for the meantime but when you have the keys to your new house it will all be worth it.
- IT’S OKAY TO ACCEPT GIFTS FROM FRIENDS & FAMILY
Getting into the housing market can be tough but there is no shame in needing a little bit of help. It’s not uncommon for first time home buyers to accept monetary gifts from their loved ones in order to come up with the funds for a down payment. There is no harm in asking, what’s the worst that can happen?
- USE YOUR RSP
If you make a contribution to your RSP, you can use your rebates towards your down payment. Anytime you get a lump sum of money it is a great idea to put it aside for your down payment. It will surprise you how quickly it adds up when you periodically put extra money aside.
There is no need to get overwhelmed when it comes to saving for your down payment. It can be easy if you create a solid plan, stick to it and keep your eyes on the prize. If you need any help with budgeting, send me an email!