Saving a Down Payment

Hanley TeamMortgages, NewsLeave a Comment

A down payment is equal to at least 5% of the purchase price of the home you are looking at. This can come from your own resources, or as a gift, and is due on closing. ??

Saving a down payment can be challenging, especially for first-time homebuyers. According to Generation Squeeze, in the city of Toronto it can take up to 15 years to save up a down payment for a home. This is why it is so important to start saving early.

Here are some tips to help you save the money you need to purchase your dream home:
1. Pay off your credit card debt, instead of continuing to let it grow. Use cash instead of credit, so you know exactly how much you are spending✔️
2. Cut back on other spending in order to prioritize buying a home. In order to do this, you may need to create a budget to see exactly where your money is being spent✔️
3. Calculate how much you need to save. Seeing an actual dollar amount you need might motivate you to save more money✔️
4. Economize your lifestyle. Consider downsizing your living arrangements or swapping out things like a monthly gym membership or vacation for alternative options such as running outdoors or staycations. This might not be as enjoyable at first, but it will allow you to save money✔️

Call us today to discuss how to get started or to get more information ?
We would love to help!

To learn more about Generation Squeeze, click here.

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