Buying a house can be a daunting task, but with the right plan and strategy, it's definitely achievable. To get started, it's important to choose the right type of account to ensure that your money goes to you. This could include a tax refund, a work voucher, or even just money you find on the street or on your couch cushions. Having a 20% down payment means you can avoid private mortgage insurance (PMI).
When it comes to saving for a home, the best thing about this option is that the money you've borrowed will be returned to your RRSP over the next 15 years, which means you'll basically pay it back with interest. If you have the documentation ready when your lender requests it, you'll save a lot of time during the process. This doesn't include the extra money you can get by further reducing your expenses, paying off your credit card and student loan debts, or looking for a part-time job on the weekends to get extra money. Now that you have a clearer picture of your financial situation, start thinking about how much you can afford to pay for a home.
Saving for that elusive 20 percent discount could take even longer, according to Fottrell, as the new findings don't take into account future home price increases. We also have a free printable savings tracker to help you begin your journey to saving for a home. The typical lifespan of a mortgage lasts 15 to 30 years, but for most people looking for a home and looking to get a home loan, those conditions are more like the amount of time it takes to save for the down payment. Altman did most of his home renovations himself, saving thousands of dollars by hiring someone else to do them.
If you start the process with little or no savings, or with a poor credit history, you'll likely need more than six months to prepare to buy a home. For example, making a higher down payment means you'll have to borrow less money, which translates to a lower monthly payment. This may seem obvious, but starting to save right away is one of the best tips you can get. Depending on the type of loan, you may consider making a 20% down payment.
Having this amount saved up will make it easier for you to purchase your dream home in six months or less.