How much to save for a home down payment

Let's talk about the Down Payment, which is one of the most intimidating aspects of home buying.

Things can quickly become overwhelming, especially in Canada, where the minimum down payment for a home is 5%. We are in a market where the typical starter home costs at least $300,000, so you'd need at least $15,000 to buy one.

(The minimum down payment for a purchase over $500,000 rises to 10%, and if you want a house worth $1,000,000, you'll need a minimum of 20%.) This post is more geared toward those of us in this region who live below $500,000.)

There are a few things you can do to make that one-time payment needed to move into your next house.

1. Be aware of your "ins and outs" Before you can properly save, you need to know how much you spend. Establish a budget and adhere to it. There are useful apps available that can direct you in the right direction; You need a budget or mint. You'll need to figure out where the extra few hundred dollars you need to put away each month so you can move things around.

Tip: Reduce the amount of recurring payments you don't use to start your budget.

2. To save money for your down payment, don't neglect other things. While buying a house might be the most important goal on your list, there are other things that need your attention as well. Keep your emergency funds and retirement plans in mind. When we're having a good time, we can all get ahead of ourselves, but it doesn't make sense to take money from other important things just to buy a house. Keep working hard and keep thinking about the big picture! Find a different means of obtaining the money for your house. There is a way where there is a will!

3. Prioritize Your Objectives Consider Your Other Contributions Without Taking Money from Important Accounts It's possible that you're saving for a vacation or a new car. Prioritize your objectives from this point forward so that you focus your resources on the most important ones. The cool thing about putting off that trip until you buy a house is that it doesn't disappear from your list of goals—you just move it down the totem pole until you're ready to focus on that.

4. Examine your earnings.

Money-making opportunities abound everywhere. Never allow yourself to be constrained by the situation at hand. What you make is your income. It could indicate that you work a few more shifts at your job. or contemplate working part-time. You might be able to sell a few skills on the side to people who need them. Keep in mind that you are in control wherever you find those chances.

Even though you are making x right now, that doesn't mean you won't be making y in the future. If you are aware that there is a gap between what you want to save and what you can actually save right now, you will be much more likely to notice opportunities to make money when they arise.

5. What are you going to do with that extra cash?

Extra work is not the only requirement for additional income. There are numerous other means by which we acquire additional funds. Have a strategy in place for what you will do with any unexpected cash that comes your way—tax refunds, work bonuses, generous family members, etc. Maybe you'll make a commitment to spend 90% on your most important goal and 10% on anything else you want! Feel free to stash that money away.

Now that we understand how to increase that down payment. You will be in a great position to maintain the routine to ensure that you have sufficient funds for your new home's extras. and to move down your priority list for saving money.

We are aware that saving for a substantial down payment may occasionally appear to be impossible. In order to ensure that you are on the right path toward obtaining a favorable mortgage, our mortgage brokers at Enrich can assist in assessing your circumstance and offer you advice. We won't just give you numbers and turn you down; instead, we'll take the time to go over the specifics needed for you to get approved for that dream home.

how to save for home down payment