Bulk-up your down payment savings with the help of these simple, practical strategies:
Finding Money in the Margins
Save your down payment faster by doing away with lavish expenses and saving any additional funds that come your way:
- Amass windfalls – Instead of looking at work bonuses, raises, or other unexpected monies as a reason to spend, consider them a reason to save (if feasible, you may even want to consider asking for a raise).
- Consider a staycation – Trading in your tropical getaway for a week at home may not sound glamourous, but it will be worth the sacrifice when you’re holding the keys to your new home.
- Sell some stuff – If you have any stocks, now is a good time to cash in. Otherwise, you may be able to capitalize on additional funds by selling unwanted items for a profit.
Attend to Your Accounts
If you haven’t already, set up a Tax-Free Savings Account (TFSA) so anything you put away can accrue interest tax-free. Even better, orchestrate automatic transfers, every payday, to be deposited into your TFSA. This way, funds are safely stowed away before you even know they’re gone.
Step It Up With a Side Hustle
Another sure-fire way to boost your savings is to boost your income – even if it’s only a few hours a week. If possible, consider picking up a few overtime hours every pay period. Or consider other (easy) side hustles such as ridesharing, taking online surveys or freelancing.
Find Little Ways to be Frugal
Of course, not everyone buys a $4.50 cup of coffee on the way to work every morning, but there are other little ways you can save that will add up over time. For instance, switching to generic brands at the grocery store, signing up at a more affordable gym (or exercising at home), taking advantage of two-for-one deals and coupons or meal-planning are great places to start.
Pay Off High-Interest Debts First
Fast-track your savings by tackling your high-interest debts. Focus on your highest-rate card (first) until it’s paid off completely, then move to the next. Or, at the very least, consider transferring your current credit card balances to a card with a lower interest rate.
Seek Down Payment Help
First-time buyers, especially, may receive assistance from a variety of first-time buyer programs and incentives. While eligibility will vary according to your unique situation, these programs may assist you in coming up with a partial or full down payment.
BONUS: Work With a REALTOR®
Your REALTOR® may not be able to save your down payment for you, but they will work hard to get you the best deal possible on your new dream home. And, as they’ll negotiate a better asking price on your behalf, you can look forward to a reduced down payment as a result!
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