By Christopher Robinson - Mortgage Architect's Inc.
When purchasing a home in Canada, you usually need a down payment to qualify for a mortgage. Saving up for a down payment is never easy. It’s all about creating healthy habits and this can take lots of time. However, if you have enough determination, you will make it. Here are some tips to improve your lifestyle and save for a down payment:
1. Create a budget
If you don’t have a budget, you will not know how much you’re spending and will not be able to make a proper plan to save up. First step is to grab your bank statements, credit card bills, line of credit statements, and figure out how much you are spending each month. Then determine what’s a necessity like rent, utilities, and what is not. After you determine the necessities and nonessentials, observe if you can make cuts to save up for the down payment. Try and put away a little money each month into your savings account. And if you have any debt such as credit cards, this must be paid out first.
2. Downsize
If your bills are too high such as rent, maybe look for a cheaper alternative. If you can rent with a room mate this will help your savings drastically. If you own a car, maybe sell it until you own a house. The house will go up in value once you have it, but your car will always go down.
3. Cut back on take-out
Let’s face it, everyone loves to eat out from time to time, or go for a drink with the friends. If you can control these temptations, you will be on the right path to owning a home. Your life might be a little dull for a year or two however you will be happy in the future.
4. Work on your CV, job skills and try to get a better position
It’s easier said than done to find a new job, but if you work at it long enough you will. There is plenty of material online to help with your job researching skills and interviews. Maybe spend time each night to improve your skills, practice having interviews and one day you will land a better job then your current. Perhaps a career!
5. Pickup a temporary second job
If you are good at something, such as photography, consider it as a side career. This can generate good amounts of money and you can do it part time.
Saving for a house is never easy and often takes years. However, if you are patient, disciplined, and can sacrifice, you will make it. Create your budget, payoff debt, create a savings plan, get a second job, do whatever you need to get ahead, and you will.
Comments