Buying a home or condo makes much more sense in the favorable real estate market of the Canada but saving for a down payment is the most important task in this is the way when the buyer has saved nothing. It is not easy to buy a home but when people think about their hard earned dollars they are paying every month for rent then they understand the value of money. It is a big reason that compels millennials and people to move into home ownership.
Though the housing market of Canada is affordable it depends on the savings. Saving for a down payment is the biggest financial goal when it comes to buying a house or condo. Here are the 4 ways to save a down payment for a home in Canada.
Set Priorities and Cut Back Expenses
Prioritizing things and then start saving for the top priority is the top secret to save money. Now you want to buy that dream house or luxury Saskatoon Condos then buying a condo is your priority so focus on it and cut back on the other expenses. Other expenses might include, vacation plans, dining out at restaurants, café bars etc. Review the monthly budget and check where you’re spending too much then tighten your belt in those areas and set budget again.
Pay Off Credit Card Debt
What about your credit card score? It is important to know about the credit card score because a consumer with high debt or bad credit score can’t apply for the mortgage. It is suggested to pay off your credit card debt first to improve the score before buying a home in Canada. It increases the chances to qualify for the mortgage or mortgage insurance premiums. So, if you’re planning to buy a home then pay off the credit card as much debt as possible.
Use High-Interest Savings Accounts
A high-interest savings account is also a great place for saving money for a down payment. There are many online companies or institutions to which you can link your bank account and create a savings account. The biggest advantage of using high-interest saving account is that it sets an automatic savings plan and schedule the money transfer accordingly. Many Canadians who are interested in buying Regina condos or new house save their money through these savings accounts.
Buy Canada Savings Bonds (CSBs)
Buying savings bonds from the Canadian government is a great way to save money. It is just like taking loan from the government for a specific time at a fixed interest rate. Canadian government offers two types of savings bonds to the residents of Canada who are interested in buying a home. The nationals can purchase saving bonds from banks or institutions for a minimum amount of $100 and they can use in an automatic or payroll savings plan. Some provinces in the Canada also offer saving bonds like Ontario Saving Bonds. Visit your bank or check Canada Savings Bonds official website to know what interest options are available and when you can buy these bonds.