The down payment, which a mortgage lender won’t finance, is an essential component of purchasing a house.
For example, a house for sale on Montreal’s West Island usually sells for around 450,000 Canadian Dollars. It can be difficult to arrange 5-20%, which is 22500-90,000. CAD, if your finances aren’t in order. Keep reading for more tips to help you save for the down payment on your dream home.
Use your Retirement Plan.
Once you have a retirement plan, check to see if there are penalty-free withdrawals. Many such plans allow home buyers to borrow against retirement savings. This is an excellent way to raise your down payment if you aren’t worried about spending your retirement funds.
It’s important to set priorities correctly
Who wouldn’t love a nice dinner at a high-end restaurant, fancy jewellery, and a new phone? You should not worry about this when you’re saving for a bigger purchase such as a home. First, determine if purchasing this item is high on your priority list. If this is true, you will need to trim your expenses. One way to cut down on your spending is to look at where you’re overpaying. Cut down on the amount of time you spend eating out. It doesn’t matter how small the difference is, because every drop counts!
Make Use of Your Investments
You may want to make sure you have enough money saved up for your rainy day. If you fear that you might lose out on the investment you have made on them, you should look at them this way. You’ll get a return on your investment when the property increases in value.
Use Only One Car at A Time
Pooling can be a great way to save money if you and your family have two cars. This can save you money. You could also consider riding a bike or motorbike to work, which will help you cut down on petrol costs. People who have done it have saved $7000 per year.
You can have a garage sale.
Everything is always in perfect condition and kept in our garages. This is a great opportunity to make some money while also cleaning up your home. You can also list items online or hold a garage sale over the weekend.
Use the 1st Time Homebuyers Programme
This program is suitable for first-time homebuyers. If you are interested to purchase a house on Montreal Qc’s west island, the government will provide a 5-10% down payment. This program could be helpful if your goal is to buy a house.
Get a Special Savings account
This is a simple way to save your money. Create separate savings account from your main account. Install an automated debit in your savings account. Your savings will never be used for anything except the West Island home and commercial property.
You can get rid of those credit cards
Credit cards can cause financial problems by charging you high-interest rates. The first thing to do if you want to make saving for a property is to pay off your credit card debt. The debt snowball method can be used to pay them off. This means that you pay your smallest debts first before moving onto larger debts.
Furthermore, if your debts are too high, you will lose your loan application. That is why it’s important to pay down those cards.
Saving money for your house or property that is for sale in West Island could burn a hole in your pocket but it should be considered a long-term investment that can become an owner. But, you should never stop saving as there will always be expenses after you purchase your home.