Tips & Tricks To Save For A Down Payment On A House | Refresh Financial
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Tips & Tricks To Save For A Down Payment On A House

 Tips & Tricks To Save For A Down Payment On A House

Trying to save up for a down payment can seem daunting, especially if you already live paycheck to paycheck. Even though the market in Canada is tough, Canadian families are still managing to do it. Here are some great tips & tricks to save for a down payment on a house.

1. Set Up Automatic Transfers

- Set up auto transfers from your checking to your savings on payday, so that you'll get used to it not being part of your monthly cash flow. This way, you can save without having to remind yourself every month.

2. Find Lower Rent

- Move into a smaller place with lower rent until you've saved enough for a down payment. Moving isn't fun, but if it helps you reach your goals faster, you might want to consider it.

3. Don't Spend Extra Income

- Throw all your bonuses, windfalls, tax refunds and any other money on top of your regular income into your savings. Be aggressive with your extra income and make sure you put it towards your down payment goal.

4. Sell Your Car

- If you can make ends meet using public transit, or biking to work, then this will give you an opportunity to save on transportation costs.

5. Ask For A Raise

- Depending on how long you’ve been at your job, you could be in line for a raise. Take all the “extra” money you’d be making and put it into your savings account each month.

6. Max Out Your RRSP Contributions This Year

- If you max out your RRSP your RRSP contributions, you can take advantage of the tax refund you'll receive when filing this year's taxes. You can also take advantage of the first time home-buyers tax program that allows you to take money for your down payment out of your RRSP tax, and penalty free.

7. Find An Income Booster

- Take a second part-time job, or offer a service around town. Tutoring, odd jobs or child care… the options are endless. Every dollar you earn gets you closer to your goal of buying a home!

8. Tighten Your Budget

- Budget tips can be the hardest to implement as it's difficult to change a lifestyle we're accustomed to. Once you take a hard look at your monthly cash flow, you're probably going to be shocked at how much you're spending on unnecessary items. Save that money and put it towards that down payment! Check out this blog for a list of the top 10 ways Canadians are wasting money every month!

It's not easy saving up for a down payment, especially in the market that most Canadians find themselves in now. It's a long road involving patience and sacrifice, but once you finally grab the keys to your new home, it will all be worth it.

What are some of the tricks and tips you used to save large amounts of money faster? Let us know in the comments!

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