Save a downpayment to buy a home this year. Here’s how!

Posted on August 3rd, 2017

DSC 15 ways photo

You’re saving a down payment to buy your first home. Follow these steps and watch your down payment grow.

1. Are you celebrating
a birthday?
Consider setting up a down payment account. Then let mom, dad, grandma, older siblings, aunties and uncles, and anyone else who usually buys you gifts, write a cheque instead.
2. Have you accomplished
something important like
graduating from university
or college?
Let relatives and friends know and tell them about your down payment account.
3. Have you and your sweetie
been thinking about setting
a wedding date?
Families and friends love weddings and will often ask what you would like for a gift. Mention your down payment account.
4. Is clutter out of control? Hold a yard, sidewalk, or garage sale and put the proceeds into your account.
5. Be your own chef
or barista.
Breakfast, lunch, dinner or coffee out is expensive. Keep track for a week and you’ll see. Start making your own. You’ll be surprised at how quickly the savings add up.
6. Use your savings. You can use up to $25,000 of your RRSPS for a down payment under the Home Buyers Plan. The withdrawal isn’t taxable if repaid within 15 years.
7. Get the first-time
buyer rebates.
The property transfer tax is 1% of the first $200,000 and 2% of the remainder – but first-timers are exempt.
8. Downscale. If you have a one-bedroom apartment in a high-rent neighbourhood, consider switching to a bachelor suite or moving to a less expensive neighbourhood. Saving just $300 a month will add up to a down payment within a few years.
9. One plus. Consider buying with a sibling. You were roommates together all through childhood, so you know what you’re getting into.
10. Two can live cheaper. What about buying with a close friend? Make sure you spell out the fine print.
11. The more the merrier. Consider a larger property. Find the home you want and buy it as a group. Again, spell out the fine print.
12. Stay home. If your family arrangement is working, why not save for a down payment, buy and rent it out as an investment?
13. Lower your expectations. Instead of a bungalow, consider starting with a small one-bedroom apartment.
14. Change your expectations. If you can’t afford your first choice neighbourhood, find a home in your second choice of neighbourhoods.
15. Handy? Find a home in need of care and spruce it up! Get an inspection first so you know exactly what repairs are needed.

 

Our Royal Pacific REALTORS® can help you find your first home – whether it’s a postage-sized condominium in downtown Vancouver, a townhome in Burnaby or Richmond, or a detached home in Coquitlam.

Give us a call at 604.266.8989.