How to Save a Down Payment for a House

Before you start saving for down payment for your house, you need a crystal clear target, You will need to know how much you need to save, and a realistic target timeline.

Step 1: Know your numbers

Go to your local mortgage representitive or simply use online mortgage affordability calculator (You can also use one on my website under Mortgages > Calculators > Mortgage Affordability Calculator). Enter your Income, expenses, and for down payment add 5% if you want to go with  minimum as First Time home buyer. The calculator does a good job to tell your the amount of money you can take as loan towards your house.

Step 2 : Plan your spendings

Now, that you know your numbers, it's time to work! Before you start spending your paycheck, it's important to have a plan with atleast 40% of income going towards Saving for down payment. You must transfer the amount to Savings first before start spending.

Step 3: Cut Some Expenses in Your Budget

We all have some online app subsribsripts that we have but never use, it's time to unsubscribe those. You may also need to cut down your Friday evenings dinner, and unneccesary expenses on items you want it but don't need it. I am not saying to completely quit going out for dinners but reduce the frequency so the excees amount can go towards your savings.

Step 4: Boost Your Income With A Side Hustle

If you have some extra time on weekends or weekdays evening that you think you can utilize to earn some extra cash, go for it. It's doesn't have to be forever, but more is always better especially when you have target to achieve.