Allison Cosgrove, the Blue Jean Mortgage Queen providing solutions and results for homebuyers in Mississauga, the GTA, and Golden Horseshoe areas, is known for her open, honest, approachable service for home buyers and sellers. Today she discusses how to save for a new home despite a challenging housing market.
“Buying a new home can be a daunting task, especially if you are struggling to save enough money for a down payment,” says Allison, “But with careful planning and commitment, it is possible to turn your dream of homeownership into a reality!”
She shares her top tips:
- Determine Your Savings Goals: Before you begin saving for a new home, you need to determine how much you will need to save. The down payment required for a home can vary depending on the type of property, location, and other factors. However, most lenders require a minimum down payment of 5% of the purchase price. To get a rough estimate, consider how much you can afford to pay monthly and then work backwards to determine how much you need to save in total.
- Set a Budget: One of the most crucial steps in saving for a new home is setting a budget. Determine your monthly expenses and create a budget that allows you to save as much money as possible. Look for ways to cut expenses such as eating out, subscriptions, or other unnecessary memberships. Consider reading books on how to save money, investing, and managing debts.
- Increase Your Income: Another way to save for a new home is by increasing your income. Find ways to make extra money, such as freelancing, starting a side business, or taking on a part-time job. Be flexible and evaluate all your options. You may also want to consider asking for a raise at your current job.
- Open a High-Interest Savings Account: An essential thing to consider is where you will save your money. You should open a high-interest savings account, which can be as much as 2.5% or higher. Do thorough research to find an account with a favourable interest rate that will help you grow your savings faster.
Allison adds, “When it comes to saving for a new home, talking to a mortgage broker is very beneficial. Mortgage brokers will save you both time and money since we have access to multiple lenders and can shop around to find the best interest rates and loan terms for your specific needs. Additionally, we explain different mortgage programs, interest rates, and repayment terms, helping you make an informed decision. I love working with families and showing them the path to home ownership. Don’t assume you cannot save for a new home. Contact me today and let’s start a discussion.”
Learn more on Allison’s website and on her Facebook, Twitter, and Instagram pages.
