INDUSTRY INSIGHTS

Regularly updated articles to give you expert advice on your homeownership journey.

Tips on how to save for a down-payment

So, you're thinking about buying a house? There are many great ways to save for a home. Here are some of our tips:

1. PAY OFF YOUR CREDIT CARD DEBTS

If you're trying to save for a down payment, you should first pay off all your debts. If you try to apply for a mortgage with too much debt, you won't qualify. Paying off high interest debts first will help you further save. You can use our mortgage calculator to see what you can afford.

2. SAVE MORE FROM WORK

Getting a raise can be exciting and you may be looking for fun ways to spend your money. When you get a raise at work, take that extra money and save it in a separate savings account. You will be living off the same wage as before and you'll have another account that's constantly growing!

3. OPEN A TAX-FREE SAVINGS ACCOUNT

The Tax-Free Savings Account is a great way to save your down payment money. The money can grow tax-free in this account meaning you won’t have to pay income tax on the money you earn as it grows in this account. Consult with your financial planner or advisor to set up options that work for you.

4. SET UP AUTOMATIC TRANSFERS

Set up automatic transfers on payday to your savings account. Once you get used to it, you won't even think about the money anymore.

5. SEE WHERE YOU CAN CUT DOWN

There are so many ways you can start to cut down when you look at what you've spent in the last month. Try:

    • Making lunches instead of buying
    • Opt for the coffee provided by your office instead of getting an expensive coffee elsewhere
    • Carpooling to save on gas money
    • Having your friends over instead of spending your money at the bar
    • Cutting your cable and phone line

By looking at the RELNKS mortgage calculator you will be able too see how much you need to save for a down payment. Don't forget to see if your city has a first-time homebuyers incentive to save even more!

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