1. Start with a clear budget

Understanding where your money actually goes is the foundation of saving. Track your income and expenses to identify areas where you can cut back.

Reducing discretionary spending, like dining out, subscriptions, coffee runs, and non-essential shopping, frees up money for your down payment. Even small adjustments add up over time.

2. Open a dedicated savings account

Keep your down payment funds separate from everyday spending. A high-interest savings account or TFSA helps protect your savings from being unintentionally spent while keeping it accessible when you’re ready to buy.

3. Use government programs strategically

• RRSP Home Buyers’ Plan (HBP): Eligible buyers can withdraw up to $20,000 from their RRSP tax-free for a qualifying purchase. Couples can each withdraw $20,000. Repayments are spread over 15 years.
• Ontario Home Ownership Savings Plan (OHOSP): Ontario residents earning under $40,000 individually or $80,000 as a couple can receive provincial tax credits on contributions of up to $2,000 per year ($4,000 per couple), accelerating savings.

4. Boost your savings with extra income

Side income, bonuses, tax refunds, gifts, or selling unused items can meaningfully shorten your timeline. The key is to direct that money immediately into your down payment fund before it gets absorbed into everyday spending.

5. Explore low-down-payment options carefully

Programs such as CMHC-insured mortgages allow purchases with as little as 5% down. While this can help you enter the market sooner, it’s important to understand the trade-offs, including mortgage insurance costs and long-term affordability.

6. Set milestones and track progress

Break your savings target into monthly or quarterly milestones. Use a spreadsheet, budgeting app, or visual tracker to stay focused. Progress is easier to maintain when it’s visible.