Save for Downpayment

How to Save Money for Downpayment

If your want to buy house, saving money for a down payment is a big issue. Your goal should be to save as large a down payment as realistically possible. The minimum down payment is currently set at five per cent of the purchase price of your home, however, if you have anything less than a 20 per cent down payment you'll have to purchase mortgage default insurance.

For many people, it's no problem to keep up the bi-weekly or monthly mortgage payments and other costs associated with home ownership. But what usually holds first time buyers back is the initial down payment required to obtain a mortgage and other high costs associated with purchasing a home, such as legal fees, disbursements and land transfer taxes. Find out more about buying your own home and closing costs.

When people decide they want to save money for down payment to buy their own home or they just want to get ahead financially, most choose one of two strategies:

  1. They look for new ways to earn more money
  2. They review and lower their expenses and save the rest

How to Lower Your Expenses and Maximize Your Savings

There are numerous saving options to consider and implement if you want to start saving for a new home:

  1. Move back home (to your parents or in-laws).
  2. Move to a less expensive area or change your rental for cheeper, smaller and more affordable one. If your plan involves moving to a different area, make sure commuting costs are calculated in before you decide to change location.
  3. Sell your car and use public transportation and/or bike. You will be surprised how much you can save when you don't have to pay for car insurance, parking, gas, repair and car payments (if you have them). You will still have annual cost of a public transportation pass and occasional car rental cost, but that is just fraction compared to annual car cost.
  4. Limit your spendings at food-courts, restaurants and bars. Prepare yor food at home, use leftovers for lunch, stock your fridge with drinks you like and have only occasional visits to bars. This is not fun, but think how much of your savings will go directly into your house down payment fund.
  5. Reduce grooming and clothing expenses and utilize what you have. With a little effort you can look good without high expenses.
  6. Tune down your vacations. Go camping or stay at home and visit some local areas instead of spending couple thousands on Caribbean or some other more expensive vacation.
  7. Cut in half or limit your spendings on birthday and holiday gifts. If crafting is something you can do, make something personal for people on your list. Use your imagination, shop early and try to find items on sale for gifts.
  8. Cut your spendings on non essential utility cost and other perpetual payments. Review each service and decide what you can live without. Start with cable or satellite television, smartphone plans, gym and other club memberships, unnecessary banking fees, newspaper and magazine subscriptions etc.
  9. Lower your essential utility costs like electricity, heating and cooling (unplug all unused electrical devices, install a programmable thermostat, install led lights, lower the temperature on your hot water heater, lower the temperature in your home during the cold months, increase the temperature in your home during the warm months etc.)
  10. Earn more money. Look for ways to earn more money like picking up overtime, getting a part-time job, asking for raise at work or start a side-income business.

Sponsored content:


Buying a home is beginning of an exciting adventure and for most buyers it is the biggest financial investment of their lives. Yet a great number of people follow emotional impulses to the exclusion of sound thinking when they make an offer on a property they want to buy. Read more...


Arranging to pay for that property you plan to buy is one of the most important financial decisions you will ever make. Regardless of how certain you are that you will get mortgage, it is always good idea to get pre-approved from the mortgage lender of your choice. Read more...

Save money on entertainment! Check your local community events calendar for inexpensive or free entertainment of all kinds.
Organize yard or garage sale and turn that excess clutter into extra cash.
Sign up for (and maximize) every free customer rewards program you can.

Community Info

Grand River Brantford
Grand River Brantford
Glenhyrst Gallery Brantford
Lorne Park Brantford
Lorne Park Brantford
St. George Village Ontario
St. George Village Ontario
Paris Ontario
Paris Ontario

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