Get a free, no obligation personal loan quote with rates as low as 6.99%
Get Started You can apply with no effect to your credit score

Purchasing a home, whether it’s your first or fifth, can be both an exciting and stressful time in your life but for many it’s also the ultimate achievement. Being as prepared as possible is probably the most important step in the home buying process, this of course includes saving for a down payment. The average Canadian typically believes that they must save tens of thousands of dollars before they can even think about looking for their dream home. While having a sizable down payment is extremely important, a down payment is usually more affordable than you’d think.

There are several of steps you can take to help make sure you’re both saving the right amount of money while being able to purchase your home as soon as possible.

10 Tips for new home buyers, here.

Have Goals

Your number one goal is definitely to purchase a home, but unfortunately that goal tends to seem rather large and out a reach when you first set it. This is why it’s important that you set a few smaller goals to help you move the process along and guarantee that you’ll have your down payment before you know it.

So what should these smaller goals be? Technically whatever you want then to be as everyone’s home buying journey is different, but if you’re looking for some inspiration here are a few helpful goals to set:

  • Set up an automatic weekly or monthly transfer to your savings account.
  • Cut back on eating out or create a meal plan so you’ll be more likely to eat at home.
  • Set a monthly savings goal that is higher than you want it to be, you’ll feel amazing once you’ve achieved it.

Whatever goals you choose to set, make them achievable but also challenge yourself especially if your ultimate goal is to purchase a house within a specific time period.

Put Yourself on a Budget

Now that you know what some of your goals are, you should definitely put yourself on a budget. While we know that budgets can seem restrictive, we also know that challenging yourself is a sure-fire way of achieving your goals (Take a look at this article to learn how to create your own budget).

First you need to calculate your monthly expenses, these should be the necessities:

  • Rent
  • Utilities
  • Groceries
  • Phone bill
  • Car payment/ gas/ transportation
  • Debt repayment
  • Contributions to long term savings like TFSA and RRSP

Once you know the exact cost of living for one month, subtract that from your total income for the month and you’ll know what you have left over to do with as you please. We wouldn’t suggest putting all of it in your savings but definitely consider putting away the majority of it.

Now Stick to it

Unfortunately now comes the hard part, sticking to your budget and working towards your goals. We won’t lie to you and say it’s easy to stick to a budget, because it’s not. It requires work and dedication, but the good thing is that you have a really great and important goal you’re working towards, a home. Focus on how much you want to own a house and how great it will feel when you finally do.

Save Intelligently

Apart from sticking to a budget and saving as much as you’re comfortable with, you also need to work at saving intelligently. This means you need to be prepared for the unexpected. Life happens and it could derail your house goals if you aren’t prepared. An emergency fund will help with this. While you’re saving for a down payment, also try to put away a bit each month for any expected issues or emergencies.

Worried that there will never be a right time to invest in a house? Read this.

Look into Increasing Your Monthly Income

If owning a house is extremely important to you then you can also consider increasing the amount of income you bring home each month, this will definitely help you quickly save enough for a down payment. Look for a second job that you can work at on the weekends. Consider selling items you no longer need or use online. Or turn a hobby into a job. Just make sure that you’re actually making a profit or that the time commitment is worth it to you.

Choosing to purchase a house is a serious decision and saving for it will be a challenge. But, when you make a plan and work hard to stick to it, a down payment for your future home can be achievable.

 

Caitlin Wood, BA avatar on Loans Canada
Caitlin Wood, BA

Caitlin Wood is the Editor-in-Chief at Loans Canada and specializes in personal finance. She is a graduate of Dawson College and Concordia University and has been working in the personal finance industry for over eight years. Caitlin has covered various subjects such as debt, credit, and loans. Her work has been published on Zoocasa, GoDaddy, and deBanked. She believes that education and knowledge are the two most important factors in the creation of healthy financial habits. She also believes that openly discussing money and credit, and the responsibilities that come with them can lead to better decisions and a greater sense of financial security.

More From This Author

Special Offers

More From Our Experts

https://loanscanada.ca/wp-content/uploads/2023/09/GlobeMailTopCompanies2023-1.png
Loans Canada places No. 228 on The Globe and Mail’s fifth-annual ranking of Canada’s Top Growing Companies.

By Caitlin Wood, BA
Published on September 29, 2023

Loans Canada is excited to announce it has made it onto the Globe and Mail’s Top Growing Companies list for the second year in a row.

https://loanscanada.ca/wp-content/uploads/2023/09/Finder-Awards.png
Finder Awards Finalists: Personal Loans Customer Satisfaction Awards 2023

By Priyanka Correia, BComm

Loans Canada is happy to announce it received the finalist award in the Best Personal Loan Search Platform category.

https://loanscanada.ca/wp-content/uploads/2016/12/caution-1.jpg
Beware of Fraudulent Lenders Impersonating Loans Canada

By Caitlin Wood, BA

A note to our clients about fraudulent lending practices and illegal upfront fees.

https://loanscanada.ca/wp-content/uploads/2024/04/T1-general-form.png
Tax Season: Getting To Know A T1 General Form

By Savanna Craig

The T1 General Forms are an important part of filling out your taxes. Find out how to file the T1 General Form this year.

https://loanscanada.ca/wp-content/uploads/2024/03/FHSA-safe-contribution.png
How To Invest A $8,000 FHSA Contribution Safely With Low Risk

By Tony Dong, MSc, CETF

The Canadian housing market is red-hot, making the dream of homeownership seem out of reach for many. However, aspiring homeowners now have a new ally...

https://loanscanada.ca/wp-content/uploads/2024/03/negative-amortization.png
What Is Negative Amortization?

By Jessica Martel

Thanks to multiple interest rate hikes, homeowners are experiencing negative amortization. Find out how it can affect you, and what you can do about i...

https://loanscanada.ca/wp-content/uploads/2021/06/Income-Assistance-New-Brunswick.png
Income Assistance In New Brunswick 2024

By Mark Gregorski

The province of New Brunswick provides a comprehensive social assistance program for residents called Income Assistance.

https://loanscanada.ca/wp-content/uploads/2022/03/Home-Reno-Tax-Credits.png
Home Renovation Tax Credits In Canada 2024

By Bryan Daly

Federal or regional government may offer tax incentives to residents who are financing their homes in various ways, such as home renovation tax credit...

Recognized As One Of Canada's Top Growing Companies

Loans Canada, the country's original loan comparison platform, is proud to be recognized as one of Canada's fastest growing companies by The Globe and Mail!

Read More

Why choose Loans Canada?

Apply Once &
Get Multiple Offers
Save Time
And Money
Get Your Free
Credit Score
Free
Service
Expert Tips
And Advice
Exclusive
Offers

Build Credit For Just $10/Month

With KOHO's prepaid card you can build a better credit score for just $10/month.

Koho Prepaid Credit Card