8 Ways to Save for a House Downpayment
If you thought the biggest challenge of buying property is arranging the finance or finding the right place, check again! No, we are not saying those aren't big challenges.
For instance, a good house for sale in the west island, Montreal Qc usually costs around 450,000 CAD. Arranging 5-20 percent i.e 22500-90,000 CAD will seem tough at first if you don't handle your finances well. Read on to know more about tips that help you save for the downpayment of your dream property.
Use Your Retirement Plan.
If you have a retirement plan in place, then try and see if it offers penalty-free withdrawals. Many such plans let home buyers take a loan against their retirement savings. If you don't have a problem spending your retirement money, then this is a good way to gather your down payment.
Setting Your Priorities Right
Who does not want that dinner in a swanky restaurant, expensive jewelry, a new phone, or that shiny new car? But when you are saving for something big like a house, it is important to ignore all this. First and foremost, you need to understand if buying this is on your priority list. If it is, you need to cut back on your expenses. A really good way is to evaluate your expenses and see where you are going overboard.
Use Your Investments
If you have a handful of investments saved for your rainy days, it might be a good idea to use them now. If you think that you will lose out on the profit you are making on them, see them this way. If you invest this into your property, you will get a return on investment once the value increases.
Use One Car at a Time
If you and your family members use two cars, try pooling and use only one car. This can save you a lot of money. People who have tried doing this have saved over $7000 annually.
Take Advantage of 1st Time Homebuyers Program
If you are a first-time homebuyer, this program is for you. If you are interested in buying one of the houses for sale on the west island, Montreal Qc, the government will agree to pay 5-10% of the down payment.
Drop Those Credit Cards
Credit cards are like slow poison to your finances as they charge you a lot of interest. If you want to save to buy a property, the first thing you should do is to get rid of your credit card debt.
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