8 Simple Tips To Help You Save For A Mortgage.
Buying a house, for most people, is the biggest investment they will ever make. This may seem daunting, or unattainable, depending on what phase of life you’re in - but it doesn’t have to be this way.
In this market, saving for a home is crucial. Homes are moving so quickly that if you don’t have your financing in place, you might end up missing the home of your dreams and we don’t want that.
I’ve created an infographic which breaks down 8 different ways to help you reach your home-ownership goals and here is a break down of those tips and tricks.
1) Open a Tax-Free Savings Account. This will help your money earn money without tax implication when you make a withdrawal.
2) Review Your Expenses. Check what you’re paying for internet, cable, cellphones and credit cards. There is a lot of opportunity to tighten up your purse strings, if you really evaluate these monthly costs.
3) Open a Savings Account at a different institution. This will reduce the temptation of spending money, ESPECIALLY if there is no debit card attached to the account and you make automatic deposits.
4) Auto deposit into Savings Account. Like in Tip 3, having funds set aside in a Savings Account automatically helps create good habits.
5) Debt Stacking. Pay off your most expensive debts first. Review what you are being charged for interest costs and prioritize paying off the most expensive debts first.
6) Save Tax Refund Money. Some people receive a lump sum from the government for over-paying throughout the year. This isn’t “free” money and is a great way to get a head start on a down payment.
7) Create AND Follow a Budget. Make sure it is realistic and something you can commit too. As a tip - groceries and eating out are a major expense and are the first place I advise my clients to look for possible savings opportunities.
8) Decline Credit Increases or Additional Credit. Now is not the time to increase you Line of Credit or Credit Card limits. The focus is on saving money to put towards your new home.
It’s not realistic to assume that everyone can start implementing all these tips at the same time, but by committing to at least one will help get you closer to your home ownership goals. Remember, the more you save now, the lower your monthly mortgage payments will be in the future.