How to Save for Your First Home Down Payment
Buying your first home can feel overwhelming, especially when it comes to saving for a down payment. The good news? With planning, discipline, and the right strategies, home ownership is within reach.
Start with a Budget:
Track your income and expenses to see where you can cut back. Reducing discretionary spending—like dining out, subscriptions, and non-essential shopping—can free up money to go directly toward your down payment. Even small changes add up over time.
Open a Dedicated Savings Account:
Separate your down payment funds from your everyday account to avoid temptation. Look for a high-interest savings account to maximize growth while keeping the money accessible.
Take Advantage of Government Programs:
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RRSP Home Buyers’ Plan: You can withdraw up to $20,000 tax-free from your RRSP to buy a qualifying home. Couples can each withdraw $20,000. Repayments are required over 15 years.
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Ontario Home Ownership Savings Plan (OHOSP): Ontario residents earning under $40,000 individually or $80,000 as a couple can earn tax credits on contributions up to $2,000 annually ($4,000 per couple). That’s up to $500 in tax credits per year, helping you save faster.
Boost Your Savings with Extra Income:
Consider temporary side hustles, selling unused items, or putting bonuses, tax refunds, and gifts straight into your down payment fund. Every dollar counts.
Take Advantage of Low-Down Payment Options:
Programs like CMHC’s five per cent down mortgage make it possible to buy a home without having saved a full 20% down payment. Even a small down payment can get you started while you continue building equity.
Set Goals and Track Progress:
Break your target down into monthly milestones and celebrate achievements along the way. A visual tracker or app can help keep motivation high.
By combining disciplined saving, smart budgeting, and government programs, you can turn the dream of home ownership into reality faster than you think.
Ready to start saving and planning for your first home? Speak with a REALTOR® member of our team today at movingsimcoe.com/schedule.
