5 Tips To Save for A Down Payment

Where are first-time buyers getting the money?  If you aren’t one of the lucky ones to get help from your parents, heroic savings measures are needed by anyone thinking of buying in cities like Toronto and Vancouver. You must make sacrifices on all your spending. Here are five ideas that can help you save thousands of dollars.

1. Opportunities to Save In Your Budget

Go through your budget and look for opportunities to save. Make sure you’ve done everything possible to reduce your costs. Here are a number of examples of how to lower your fixed expenses:

  • Eliminate your cable subscription
  • Switch to a cheaper cell phone plan
  • Ask your car and home insurance company for a better rate
  • Relocate to lower your rent or move in with your parents 
  • Sell your car and take the TTC/Bus 
  • Stop buying lunch and pack it instead
  • Stop the Starbucks run every day 
  • Dial Down Your Vacations
  • Cut your Spending in half at restaurants and bars 

2. Take up Part-Time Work Opportunities

Once you have trimmed your budget, it’s time to increase your income. The easiest way to start making more money is to ask for a raise in your full-time job or ask for more shifts. If you’ve already exhausted these options, it’s time to consider picking up a second part-time job. Here are some examples of side jobs:

  • Graphic/Web Design
  • Retail 
  • Bartending
  • Waitressing 
  • Translation
  • Freelance writing
  • Dog walking
  • Tutoring

3. Adopt Money-Saving Hobbies

Hobbies are a great way to save money as they can keep you from shopping, going out for dinner, or other more expensive hobbies. Try incorporating a pastime or learning a skill like the ones listed below:

  • Baking
  • Painting 
  • Arts and Crafts 
  • Web development
  • Sewing
  • Jewellery making 

Not only can many hobbies save you from spending money, but building a new skill can help with personal and career development.

4. Involve Friends and Family

Don’t ever underestimate the generosity of family members. Becoming a homeowner is something your family will understand, and most are happy to contribute to your cause. If you are getting married, instead of a gift registry, let all your guests know you are saving for a home and get them to gift you cash.

5. Set Manageable Goals

Saving money for a down payment is a very big task. Often it can take years, and keeping up your enthusiasm will be challenging. One way to make the process easier is to try breaking your saving goals down into manageable sized blocks. When you hit your goal, treat yourself to a reward such as a hot bath or a new library book.

If you stick to your goals, before you know it, you’ll have a down payment saved. Then all you’ll need is a mortgage pre-approval and you’ll be ready to start house hunting!

Dominion Lending Centres NasaKasa

At Dominion Lending Centres NasaKasa we work with new home buyers every day and can help you with every aspect of the mortgage process – call us 905.997.7001 or email us mtg@nasakasa.com today. 

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