10 Tips to Save for a Downpayment
- Negotiate your rent: Have you looked at your spending cloud lately? If your like most – RENT is the biggest and most annoying expense in your budget so why not try to negotiate the rent?Landlords may be willing to give you a break if you are a good tenant and they like you. Giving you a break on rent is much less then the amount lost in vacancy. If that doesn't work, consider downsizing and pocket the difference for your downpayment. For serious savers consider a roommate or even moving back home.
- Shop around to reduce major monthly expenses: How long has it been since you looked around for a different insurance, cable, Internet or phone provider. This could save you hundreds per month. While your at it, ask yourself if you really need to have those expenses and consider cutting them completely.
- Sell your assets: Since we are on the topic of expenses this fits in nicely. Assets like your car are expensive and act as a liability when applying for a mortgage. Consider downsizing or selling. Do you really need a $40,000 car? or whatever the amount maybe. And yes, do save the difference for your new home.
- Pick up part-time work: Getting a side job is a great way to earn more for your downpayment. Use that money exclusively for your downpayment.
- Participate in your companies RRSP program: Many employers match the amount you put into your company RRSP by as much as 8%. Inquire about this with you HR department on Monday! This money can be used as part of the homebuyers program.
- Cut back on student loan payments: If you're drowning in student loan debt, you may be able to cut back on your student loan payments. Talk to your lender(s) about repayment options. Adjusting a repayment plan could slash your monthly student loan payments, giving you more room to save for a down payment.
- Keep track of your progress: Keep a graph or chart of your down payment progress on your fridge or desk to keep you motivated during tough times.
- Put it on automatic: Calculate how much you can set aside each month and have it sent to your savings account.
- Check your credit so you can work on improving it. A credit score greatly impacts your mortgage interest rate, reducing the total costs of the mortgage. Don't know your credit score? Go to www.equifax.com to pull your credit. It's $24 but it won't affect your credit.
- Call yourchoicehomes today to get in touch with a mortgage broker who will tell you exactly what you need to obtain financing from a bank. To get started now APPLY HERE.
