When I set out to save a down payment for my home in March 2015, I decided to save $40,000. I had originally planned for this process to take three to five years. But due to luck and perseverance, I was able to cut that time in half and managed to become a homeowner in just 15 months.
Saving for a down payment wasn’t easy. I used several methods to accelerate my savings rate. Here are some tips and tricks you can use to save your down payment faster.
Research and set a goal
When you embark on any savings goal, it’s important to have a concrete number in mind. Don’t start your home down payment journey with a vague idea that you’d like to save an undefined amount of money. Instead, research how much you should save by narrowing down your ideal neighbourhood. Get a feel for the price of starter homes in that area, which will help you determine how much you need to save.
Personally, I knew that starter homes in my desired neighbourhood sold for between $300,000 and $325,000. I also knew that I couldn’t spend more than $1,900 per month on a home including my mortgage payment, utilities, property tax, and insurance. Based on that information and...