Saving a down payment for the house you want to buy is one of the troubles that most home buyers encounter when you talk about real estate financing. If you are to buy, for example, a Kitsilano property, you can expect that the down payment for the house can be as much as twenty percent of the purchase price.
Before you start looking for homes, make sure you have an appropriate amount of money for the down payment so you will feel less pressured during the process. And if you are saving for an investment property, make sure you have a pro forma and have all the numbers worked out in advance.
Some markets are better than others at different times, and a realtor, who has his or her finger on the pulse of the market, will be able to help you out to determine if it is the right time to buy near you. Buying in Vancouver may be prohibitive due to low rental rates and high home prices, so a purchase in other cities such as Toronto, Calgary or Montreal may be more favorable. A local Canadian realtor specializing in investments such as Drew Macmartin can help you out with this step.
If you do not know some ways to acquire money for the down payment, here are some tips you can follow:
Set aside the same amount of money every payday.
If you receive salary twice a month, why not try saving the thirty percent of your income, put in a savings account, and be strict not to use it for other reasons.
Make this habit consistent every month, and after a year or so, you will be able to save a reasonable amount of money for the down payment. Just make sure that you start doing this year or several months before you start looking for a house.
Borrow from your friends or relatives.
Lending money from them is much more convenient than applying again for another loan to banks or mortgage companies. Your friends or your relatives might give you a loan that has more flexible and easier to handle terms and conditions.
They might not even give you interest rates when you get a loan from them. But make sure that you pay your loan on time so they will not lose their trust in you.
Know how long you will need to keep the deposit.
It will help you define how you should plan for your savings. Then you analyze your current budget and find ways to reduce the daily cost and unnecessary costs.
You might also consider various ways to make extra income to increase their savings. You might want to have the yard sales, sell things online or even take the second job.
Look for a second job.
If you have lots of time, getting a second or a part-time job might be very helpful for you. It can give you additional earnings to help you save more money for the down payment
Try to work every night or have a seasonal job, like every Christmas season. Furthermore, you can also venture into a small business that requires little capital, such as writing.
Ask for an increase in your salary.
It would do you no harm if you tried asking your supervisor for an increase if you know you did perform well in your job. Create a list of significant things you did for your workplace, present it to your manager and then ask for an increase.
If your boss realized how great your contribution to the company is, he or she might give you the boost you want. In conclusion,the above guidelines will help you save for your new house successfully.