Continued -- Ways to save for a Downpayment for any BIG Purchase!
Saving for a new home can be very hard, but NOT impossible. Here are more ways to make saving money more doable:
5. Look for cheaper ways to do things
One thing smart people do to save a lot of money is adapting to a cheaper lifestyle or look for cheaper alternatives to do things without diminishing their fun.
For example, for someone who likes to eat out a lot, they can look for cheaper places which that offer the same food choices. Also, some offer 2 for 1 coupon deals which can help in cutting your eating budget in half. For someone who loves to travel, they can opt for a cheaper destinations such as Cuba rather than a 2 week vacation in Hawaii. If you have a busy family, you can really save money if you eat at home more often.
If you are able to work some of these changes into your lifestyle, you will definitely save money. However, the key to saving money is to resist the temptation to spend it on something else right away, and to start considering the cheaper alternatives.
6. Borrow from your RRSP
RRSP allows you to withdraw up to $25,000 to buy your first home which is a great way to use as a down payment. If you don't, start saving money for your RRSP and on top of that you can get tax credit to help reduce your taxes making it a win-win situation.
7. Use the Tax Free Savings Account
A Tax Free Savings Account is a great way to save money for your future home as it lets your savings grow without having to pay income tax which means more money on your end. Consult with your financial planner or advisor.
8. See if your city has a First Time Homebuyers Program
As a first time homebuyer, you'll want to take advantage of various programs offered by various levels of government that will help make purchasing a home more affordable.
These programs help by:
1) making it easier for first time home buyers to afford a home in an expensive city
2) redeveloping a part of the city that is struggling.
These programs usually have very specific requirements. You can check with your city hall to see if your city has any sort of program like this to help first time home buyers.
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