12 Tips to Save for a Home

So you have been renting for a while, every month your watching someone else’s mortgage being paid off rather than yours. But every time you open your bank account you question whether that is going to even be possible. You deserve more. Take a look at these 12 Tips to Save Money for a Home

1. Talk to a lender sooner then you think. Even before you start saving talk to your lender. Based on your income find our how much you can afford. Have them run a few scenarios based on different sized down payments. This will help define a clear goal of what you are saving for.

2. You don’t need 20% down. Talk to your lender about mortgage options that allow 5% down payments!

3. Cut unnecessary expenses. Take a hard look at your budget and identify any expenses that you can cut, such as subscription services or eating out.

4. Make extra payments. Pay down your outstanding debts to increase your debt serving ratio.

5. Optimize your mortgage. Shop around to get the best rate and terms on your mortgage, and consider refinancing if you can get a lower rate.

6. Save your raises. If you get a raise at work, save the difference instead of spending it.

7. Set up an automatic transfer. Set up an automatic transfer from your checking account to a savings account, so that you can build up your savings each month without having to think about it.

8. Live below your means. Make sure that your lifestyle aligns with your income level.

9. Start a side hustle. Taking on a side hustle to help you save more money for a house.

10. Make your home more energy-efficient. Make changes to your home to reduce your energy costs and put the savings towards a house.

11. INVEST! Talk to your lender about using your RRSPs towards a down-payment

12. Take advantage of tax deductions. Consider taking advantage of any tax deductions you may be eligible for.

Saving for a down payment can feel incredibly daunting! Benjamin Franklin said, “By failing to prepare, you are preparing to fail” and as the old British Army adage goes, “Proper preparation and planning prevents poor performance'. 

The best way to save to buy a home is make a clear goal and set a plan around that!