Here are 5 Ways to Save Money for a Down Payment

By: Kraig Schwartz

Here are 5 Ways to Save Money for a Down Payment

Tags: Buyer Tips

Making the decision to buy a house is a difficult one, especially in the current Canadian housing climate. Before buying a home make sure you consider all costs. Working on your finances in the months prior to buying a house will improve your budget and your mortgage options.

Cut your Expenses

Examine your expenses to determine if you can cut back on any costs, such as entertainment, eating out, travel, etc. Every dollar you save can be diverted to your home down payment. You might even want to consider more drastic measures such as selling your car or moving back home with your parents, as it could significantly lower your monthly expenses.

Pay down your high-interest debt

By paying off the debts with the highest interest first, you'll pay less interest By doing this, you'll be debt-free sooner. List your debts in order, from the highest interest rate to the lowest. Make the minimum payments on all your debts.

Sell you Clutter

Look around your house for items you no longer need and can sell. You will get closer to your objective of purchasing a home even with small sales!


Get a side hustle or a second job

Taking on a second part-time job might be worthwhile if you can make it work. If getting a second job might not be the best course of action, consider starting a side hustle. Consider the abilities you possess that could be used as a side hustle to earn money.

High-Interest Savings Account

Do your research and talk to a financial institution to open a savings account that offers a higher interest rate than a traditional savings account. This can help you earn more money on your savings so that you can reach your goal more quickly.

Coming up with a down payment for a house might seem like a huge obstacle, It takes a lot of sacrifices and a whole lot of self-discipline but there are several options out there that can help you achieve your savings goals. Start by figuring out exactly how much money you’ll need, and then take on a savings strategy (or multiple strategies) that work best for you.