Saving for a Down Payment to Buy a Home
Written by: Lindsey Ewart | Financial Advisor | Corunna Branch
You may be interested to learn more about how to start saving for a down payment towards a home purchase. Although it may seem daunting to think about, here are a few tips and tricks that can help you get closer to owning your own home:
Scheduled withdrawal plan
One of the most important steps in terms of saving for your house down-payment is to set up a scheduled withdrawal plan. You can do this by having a set amount of money come out of your chequing account on a regular basis and go into a savings plan. Whether you decide to set up a Tax-Free Savings Account, a Registered Retirement Savings Plan or a regular savings account (especially if you are a first-time home buyer), this is a great first step to take in reaching your goal of saving to buy your home.
Track your spending
Another recommendation that I have for members is when you’re saving for a down payment– track your spending. Keep track of where your money is going each month and how much you have left over. This will make you aware of how you’re spending your money and any trouble areas you identify that you can decrease or eliminate (like too many restaurant outings or clothing purchases) so you have extra funds to get you closer to your down payment savings goal.
Use your tax refund (if you get one)
Another great option, at tax time, if you are lucky enough to get a tax refund, take your refund and put that towards your down payment savings plan.
Get another job (or side hustle)
Another option is also getting a second job or side hustle to accelerate your ability to save. If you have the availability and the time, even if it’s part-time, this can help you save faster.
Gifted down payments
Gifted down payments from a family member can be a great way to expedite your ability to pay for your down payment. With this option, we do would require a gift letter to be signed.
Sell items in your home
If you have some household items that you no longer need consider listing them on selling sites like VarageSale, Facebook Marketplace, or Kijiji, to make some extra cash that can be used towards your down payment savings goal.
To learn more or create your down payment savings plan with a Mainstreet Advisor, book an appointment or call your nearest Mainstreet Credit Union branch.