6 Smart Ways to Save for a Down Payment on a Home
Saving for a down payment might seem like a huge task, but it’s totally doable with the right plan! Whether you're aiming for 5%, 10%, or 20%, every little bit counts—and the sooner you start, the faster you'll get those house keys in your hand. Here are six practical ways to build up your down payment savings without feeling like you have to live on instant noodles for the next year.
1. Open a Dedicated Down Payment Savings Account
Keeping your down payment money separate from your everyday spending account is a game-changer. Open a high-interest savings account or a Tax-Free First Home Savings Account (FHSA) (if you qualify) so your money can grow while you save. Automate your deposits so you don’t even have to think about it—just watch your savings grow!
💡 Pro tip: Set up an automatic transfer every payday so saving becomes effortless.
2. Trim Unnecessary Spending (Without Feeling Deprived)
You don’t have to cut out all your fun, but small changes can add up fast!
✔️ Swap expensive takeout for home-cooked meals.
✔️ Cancel subscriptions you don’t use.
✔️ Skip impulse online shopping (do you really need another throw pillow?).
✔️ Find free or low-cost ways to have fun instead of costly nights out.
Plug those savings straight into your down payment fund!
3. Take Advantage of First-Time Home Buyer Programs
If you're a first-time home buyer in Canada, you’ve got options to help you save faster! Look into:
🏡 The First Home Savings Account (FHSA) – Save tax-free up to $8,000 per year (up to $40K total).
🏡 RRSP Home Buyers’ Plan (HBP) – Borrow up to $35,000 from your RRSP (per person) to put toward your home.
🏡 First-Time Home Buyer Incentive – A shared-equity mortgage with the government to help reduce payments.
These programs can give your savings a serious boost!
4. Boost Your Income with a Side Hustle
A little extra income goes a long way. Consider picking up a part-time job, selling unused items, freelancing, or turning a hobby into a money-making side gig. Even an extra $200 a month can add $2,400 to your savings in a year!
💡 Pro tip: Put all side hustle earnings straight into your down payment fund—no exceptions!
5. Put Windfalls & Bonuses to Work
Got a tax refund, work bonus, birthday money, or a rebate? Instead of spending it, drop it into your down payment savings. These surprise boosts can make a big difference over time!
6. Consider Downsizing or House-Hacking While You Save
If your current living costs are eating into your savings, consider:
🏡 Renting a cheaper place – A smaller apartment or living with family temporarily can help free up cash.
🏡 House-hacking – If you’re open to roommates, you can split rent and stash more savings.
It might not be forever, but a temporary lifestyle shift can get you to your goal much faster.
Saving for a down payment takes commitment, but it’s 100% achievable with a solid plan. Every dollar you set aside brings you one step closer to homeownership. Stay focused, be consistent, and before you know it—you’ll be house hunting for real!