Looks like you have finally decided to purchase your dream home! The decision of buying a home is a tough one, but people think of everything and then take the plunge.
Searching for a house in Brampton is not a big dilemma. You can connect with a real estate agent in Brampton and tell them your requirements – number of rooms, area, specifications like condo, house, and number of car parking.
The biggest dilemma they have is – How will we pay the down payment? We’ve got some tips for you! This quick post highlights the five budgeting tips to save for a down payment. If you are too concerned about this little detail, keep reading.
1. Pay off all the high-interest debts as soon as you can
You must pay off all the high-interest debts soon. The amount of mortgage you qualify for depends on your debt to income ratio. This way you will save interest and once you have paid all the debts, all the money can go into your down payment savings.
2. Find out where your expenditure is the maximum
Where have you been spending all your money? Is it at restaurants or splurging on some expensive clothing? You can skip eating fancy food every week or buy exquisite clothes on sale and save the extra money for your down payment.
Let’s say you spend $300 a month on leisure. You can reduce it to $150 and put the remaining $150 towards your down payment savings.
3. Make a budget for your household needs
You can live a comfortable life and still save money. It’s possible! Try to save as much money as you can whenever you get your paycheque. Download an expenditure tracker app on your phone, connect it with your bank account, and analyse where most of your money goes.
4. Could you move to a modest hostel setting?
If you are paying high rent for an apartment or condo, it is best to move to a basement apartment and save some money. You could also get a roommate to share the expenses and save it for your down payment.
5. Sell Expensive Items
If you need instant money for your home’s down payment, you could sell your car or the expensive items you have.
This tip is meant for those who need the money immediately. In case you have an extra car, you might want to sell one, get some money, and also save on your monthly payments and insurance.
6. Save all the unexpected money you receive
Holiday time and bonuses at corporate offices should not be spent. You must keep it aside and save every penny. Down payments can either be 5-10% of the total price of the property. It depends on how expensive it is. You would need a sizeable amount when it’s time to pay the down payment.
There is a first-time home buyer incentive in Canada. You can make good use of this if you are buying your first home.
The first-time home buyer incentive cuts down the mortgage price without adding any financial burden. Get in touch with a first-time home buyer agent to understand how this works.
If you use all these tips, you will be able to save money for down payment and also gain access to an incentive which is accessible to first-time home buyers in Canada.