It’s a well-known fact that home ownership is the single largest source of savings for Canadian households, and unlike when you pay rent, every payment you make builds equity. You have a steady income, secure employment, have been pre-approved to buy and the only obstacle in your way of home ownership is saving for your down payment. No problem! If you follow these tips and start setting something aside as savings every month you could have your down payment saved within a year.

1-Move in with your parents or in laws. The quickest way to get in to the housing market is to maximize your savings which is difficult to do when you are paying rent. If you pay a token amount of rent to the parents monthly and deposit the remainder in to a separate savings account specifically created for you down payment

$1000 a month is a conservative amount of rent to pay a month so depositing the saved money every month will yield $12,000 for the year to put towards a down payment

2-If moving in with your parents isn’t an option than move down one level in your current rental. Instead of living in a two-bedroom condominium downsize to a one bedroom or a bachelor suite. This will save you a minimum $200 per month and adds $2400 per month to your savings.  

3-Half your spending in restaurants and bars. The average person spends $250 a month eating in restaurants and bars. If you cut this expense in half, you will have an additional $1500 for the year to put towards your down payment  

4-Cut the home phone and satellite- chances are that you rarely use your landline anymore so it is money going down the drain when you own a cell phone. Satellite tv is an unnecessary extravagance when saving to buy a home. Make sure that you have a great unlimited internet package and you can replace your satellite with Netflix and watching your favourite shows online.

You will save a minimum of $120 a month which over the course of a year will put an additional $1440 towards your goals

5-Dial down your holidays. This doesn’t mean that you must sit at home for a year, just revamp your holidays to be more budget friendly. Drive to your destination or book your flights on airmiles or Aeroplan. Choose a destination that you won’t have to pay for accommodations. You most likely have a family member or friend living in the location that you are going to … give them a call and ask them if you can stay with them, chances are they will be thrilled with your company!

Savings on flights and hotel approximately $1000 every 6 months is $2000 to go towards buying a home

6-Personal income tax return – you have completed your personal income tax return and are getting a refund…. Why not take this money and add it to your savings? Chances are you didn’t know that you would receive the return and therefore it is “extra money”

$800 added to your growing savings!

No matter how many of these simple money saving techniques you choose to use, making small changes daily, weekly and monthly puts you closer to joining the ranks of many Canadians who have chosen to invest in their own financial future through owning real estate.