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Personal Finances

How to Save for Your Down Payment

Clock5 min. read
byVexxit Staff onAugust 26, 2020

Whether you want to buy a house ASAP or you’re planning ahead for the future, you should start saving for a down payment today. Here’s how.

One minute you’re 18 years old and excited to move out to start your life, and before you know it, you’re 28 and the tiny futon you’ve been sleeping on in your friend’s basement doesn’t feel quite as cozy as it used to.

Suddenly, you think it might be time to invest in a house or condo.

If you’re starting to save for your down payment from square (or, dollar) one, don’t fret— it’s not impossible! Whether you’re ready to buy a house ASAP or simply planning ahead for the future, read on for tips to help you save smarter and more efficiently.

Figure Out What You Need

Before you start, it’s important to ask yourself some specifics: Are you looking for a house or a condo? Is this a short-term starter home, will you be renting it out, or are you hoping to raise a family here? If so, how many rooms will you need? Which neighbourhood? A fixer-upper or move-in ready?

Answering these questions will help you figure out exactly what you want and what you can afford to buy. You’ll be able to figure out the approximate range you’ll need to save, which will allow you to map out a timeline and how much money you’ll need to save each month to reach that amount.

Save a Little at a Time

Saving up such a large sum of money can feel intimidating, so it’s a good idea to do it little by little and start saving as soon as possible. Ideally, you should begin putting aside money years before you’re even ready to start looking for a house, but life gets in the way and this isn’t always possible. If you’re unsure of where to begin, simply putting a set amount aside ($100-$200 from each paycheque, for instance) is a good place to start.

Take Advantage of Available Aid

There are numerous programs, incentives, and financial aid available to homebuyers to help save them time and costs. For example, the First-Time Home Buyer Incentive offers eligible buyers up to 10 percent of a home’s purchase price to put toward their down payment, thus lowering mortgage carrying costs and making home ownership more affordable. Do your research to find out which incentives or financial aid you could qualify for.

Track Your Progress

Using a financial tracking app like Mint can help you easily monitor your savings and set budgets to control your spending. Having the app on your phone means you can access your finances anywhere and at any time. The best feature? The colourful graphs, which break down your spending in a clean, simple, and visually appealing way.

Work With a Financial Expert

Working with experts in areas such as financial planning, property insurance, home equity loan, mortgages, and real estate law can be a huge help for you in the home buying process. They’ll be able to ensure you're getting the most out of any financial aid programs or government incentives designed to help eligible homebuyers, and they’ll be able to connect you with other experts and professionals you might need along the way.

To connect with incredible experts in these areas, Find a Pro at Vexxit.com. You’ll be matched with carefully selected professionals who best suit your personality and needs.

Find a Financial Advisor

Connect with a financial advisor on Vexxit who can help you put a savings strategy in place for your down payment.

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