6 TIPS on How to Save for Your Down Payment
Before you start house hunting and dreaming about character or modern finishes, you need to
save for your down payment. There are many ways you can accomplish this and not sacrifice
your lifestyle. You just need to prioritize. Here are our top 6 tips to help you save for your down
The best way to get started is to create a budget to identify how much money you are spending
on entertainment, eating out, transportation, gym memberships, sports, clothing, makeup, and
hair. Once you have your numbers, look for areas to cut back. Instead of eating out, challenge
yourself to cook your favorite meals at home. Do you need that gym membership? Try working
out outdoors if the weather permits or use YouTube to get a great home workout in.
2. Pay off Debt
The title says it all – pay off your current debts. Once you have your debts out of the way, you
will have a larger sum per month to put towards your down payment. Paying off your current
debts can also be a benefit when you are ready to meet with a Mortgage Specialist. The more
debt you have, the lower the mortgage amount will be. Talk to us about ways to consolidate
debts and make this easier too!
3. Downsize / Reduce Monthly Costs
One of the fastest ways to save is to reduce your monthly costs. The first method of achieving
this is…park that car! Walking or biking to work has its benefits. You will save money on gas and
insurance, and feel great with all of that fresh air and exercise. If parking your car is too
extreme, carpooling or riding the bus is another great option!
The second method of reducing your monthly costs is…sharing your living space! Getting a
roommate can be a little nerve wracking at first but the benefits are substantial. A roommate
would be responsible for paying half of the rent and utilities; you could also carpool!
4. Create a Savings Plan
Once you have a budget, make sure you’re saving at least 10% or more off of your paycheques
and watch that down payment savings grow. At Westoba, you can arrange for an automatic
transfer right into your savings account, you can even set it up yourself through online banking.
It’s that easy!
5. Borrow from your RRSP
Did you know that you can borrow up to $25,000 per year from your registered retirement
savings plan (RRSP) without penalty? The only catch is you will be required to pay it back within
15 years. You can apply for the Home Buyer’s Plan (HBP) to buy or build your first home either
at Westoba or any other financial institution.
6. Get a Financial Plan
Meeting with a Financial Planner can get you on the right track to saving for your down
payment because they fully understand your financial situation, and your short and long-term
goals. Working with you, they will create a plan personalized to you!
Call 1-877- WESTOBA today to meet with one of our Financial Planners.