But, before you get the keys to your new home, you have to squirrel away your down payment. This will typically run you about 20 per cent of the cost of the house or condo – if you want to avoid paying Canadian Mortgage and Housing Corporation (CMHC) insurance.

Here are 8 money-saving hacks for you to employ to build up that down payment even faster:

1. Re-evaluate your spending: Be honest with yourself. Do you know where every one of your hard-earned dollars is going?

Make yourself a budget. What are the things you have to pay for each month? How much money do you allot for groceries, gas, and entertainment? Do you stick with your budget, or do you have a tendency to overspend? (Like I do.)

After an investigation into my own personal spending habits, I learned that those coffee runs in the morning were costing me a total of $56 a month — and I’m talking $2 basic drip coffee from 7-11. I thought I was doing myself a favour by moving away from speciality artisan coffees that cost about three times as much. Alas, $56 a month is still $56 I don’t need to be spending if I drank the coffee I already have in my kitchen.

Ultimately, re-evaluating your spending is an important — and often brutally eye-opening — first step. But if you are serious about saving up 20 per cent for your down payment, you need to know what’s realistic so you can set realistic savings goals. Which leads me to my next point…

2. Constructing attainable and realistic savings goals: You want to reach your savings goal, but I’m certain you don’t want to completely change your entire way of life to do it.

By setting savings goals that are realistic and fit within your budget, you won’t have to give up those things that you love and can’t live without. With that being said, you want to ensure that you are maximizing your savings where you can. Just be prepared to work at it for a longer period of time. Perhaps it will take you two or three years to save up that down payment. But, at least, you won’t be making drastic spending cuts from those areas that bring you joy.

If you limit yourself from spending on those fun things too much, it may result in one night of catastrophic spending which will throw you right off of the savings wagon.

3. Pay off those high-interest credit cards first: I mean, you’re not really in a position to save money if you owe interest to our friends at Mastercard.

Try the snowball method to pay off those debts quickly:

Tackle the smallest debts first! Pay your minimum payments across your debts — if you have multiple cards or lenders — but be sure to put extra onto your smallest debt until it’s zero. Celebrate. Then, not unlike constructing the body of a snowman, roll those funds onto the second smallest debt while still paying the minimum payments on other debts. The snowball gets bigger and bigger until your debt is all paid off in no time.

4. Increase your income: This may seem like a “Duh!” suggestion, but it is definitely a sure-fire way to speed things up.

Sling coffee part-time, mow lawns around the neighbourhood, try having an online garage sale on Kijiji or Varage, or try your hand at babysitting/pet sitting. There are even some reliable websites that will pay you for participating in surveys.

By increasing your income and slamming those dollars right into savings, you will be able to reach those goals and milestones you have set for yourself in step 2.

5. Spend wisely: There are some amazing points systems out there that will allow you to save money on groceries, gas, and other essentials.

I am a huge fan of the Presidents’ Choice points system. I can collect points when I shop at specific PC related stores and then I can use those points to pay for groceries. They add up pretty quick, especially when you use the credit card for daily purchases, I typically save $10 minimum on each grocery run.

Did you know that Safeway offers 20 per cent off on the first Tuesday of every month?

Most grocery chains will offer a day like this. If not, be sure to shop your flyers and score sales when they do happen. By cooking at home you will save big dollars, so why not save those cents too on produce and pantry items when you can! Everything adds up.

Before going shopping (for anything, really) pop online and see if you can find any printable coupons. If you download the apps for your favourite stores, there are usually deals for members or active users that can really reduce your spending.

Bonus tip: Check the back of your receipts. Sometimes you will find coupons for other stores in your neighbourhood!

6. Cut your spending the smart way: Take another look at your budget that you reexamined in Step 1. Are there any areas that you can cut and live without?

When I was searching through my budget, I was able to cut my coffee runs, my boutique gym membership — I have access to a free gym at work — and the internet.

I know that last one might be a little surprising to most 20-somethings my age… Rest assured, I live above a café and I can often ride their wifi. This, however, meant a slower connection, therefore I cut ties with Netflix and other streaming services.

I also said goodbye to my major telephone bill with Rogers when I joined up with Freedom Mobile. Just by switching providers, I cut my bill in half while doubling my data. Score. You can call your service providers and ask to renegotiate your contracts. Most companies will do anything they can to keep your business and you can often land some deals that will save you money each month.

7. Use that Tax-Free Savings Account you opened: Build your down payment even faster by investing it into a high-interest tax-free savings account. WIth a high return interest and absence of taxes, this a safe and sure way to make that money work for you.

8. Borrow from your RRSP: You can borrow up to $25,000 from your Registered Retirement Savings Plan tax-free. However, there is a catch. You have only 15 years to replace these funds into your RRSP to avoid those tax payments.

Don’t already have one? While you’re at the bank opening your RRSP ask the financial advisors about tax credits available at a municipal, provincial or federal level that you may be able to qualify for as a first time home buyer. They might be able to lead you to some grants or tax breaks that aren’t regularly advertised.

At the end of the day, saving up for a down payment is no minor task. It will take strength, commitment, hard work and dedication. But when you reach that milestone and you earn that key to your new home the satisfaction, the pride, you will feel, will make it feel all worthwhile! Plus, the saving skills and life skills you earned along this journey will definitely help you for the rest of your life.

I mean… who doesn’t love someone who can cook a delicious restaurant-esque meal in the comfort of their own home!

So to you, the frugal fun-loving savers, I wish you the best of luck on this life adventure!

The post Life hacks to save for a down payment Speedy saving: 8 ways to save faster for your first home first appeared on RankMyAgent - Trusted resource about Buying, Selling and Renting.

Get That Pre-Approval

 Most of us would probably agree that the fun part of buying a home is the search, not the financing. While it can be tempting to focus on the excitement of the house hunt, establishing a relationship with a lender in advance is essential. Qualifying for a mortgage involves several different factors, including your income, savings and credit score. Based on that information, a lender will give you a pre-approval amount that can help to guide your search. Proceed with caution, though: the Canadian Real Estate Association warns that pre-approvals sometimes overestimate real purchasing budgets, and it emphasizes that pre-approvals do not guarantee financing. Nevertheless, you would be wise to start the financing process before you set your heart on a property.

 Do Your Research

Location, location, location. The old adage remains true, but your definition of a prime location will depend on your particular requirements. Sure, the inner-city hipster-havens are full of entertainment and culture, but does urban living suit your style? New communities can offer room to stretch your legs, but do the amenities meet your needs? The City of Calgary has many resources to assist you in finding information about your prospective community and its future development. Check out the Planning & Development and Community Services departments online for more information about Calgary’s many and diverse communities.

 Freehold or Condominium?

 Often, your budget will determine what property type you purchase. Condos and townhouses can offer the features and finishes you want at a lower purchase price. However, monthly maintenance fees can add up. Also, major improvements to common areas could bring special assessments that might run into the thousands. The Centre for Public Legal Education Alberta recommends that buyers have a professional document review completed to ensure that a condominium corporation is in good standing. With a freehold property, you don’t have to worry about monthly fees, special assessments or reserve funds, but the tradeoff is that you are responsible for all maintenance of and repairs to your property. Weigh the advantages and disadvantages, and consider how each type of ownership fits your lifestyle before deciding on a property.

 Be Realistic About What You Can Afford

 No one wants to be house poor. The Canada Mortgage and Housing Corporation (CMHC) recommends that home buyers spend no more than 32% of their gross income on all mortgage-related expenses—that means the mortgage principal and interest, as well as property taxes and utilities. You might also need to budget for monthly condominium fees, as well as mortgage and homeowners’ insurance. If you aren’t careful, your once-manageable purchase price could balloon into a burden. Sit down with pen in hand and write out your monthly budget, taking into consideration all applicable costs. If you aren’t comfortable living on what’s left over, think about lowering your price point.

Take Off Those HGTV-Coloured Glasses

Admit it: you want hand-scraped hardwood floors, waterfall quartz countertops, massive closets, and a tastefully finished basement. Unfortunately, it isn’t likely that you’ll get everything on your wish list in your first home. Instead of expecting perfection, make a realistic shortlist of must-haves. Maybe you can live with the old countertops for now if the transit links are good and the yard is big enough for Fido.

 Don’t Rush!

Your home might be the most significant purchase you ever make, and you don’t want to be hit with (home)buyer’s remorse three months in. Take your time. Talk it out with your partner, family members and friends. Test drive your would-be commute and visit local restaurants, shops and services. Walk around the neighbourhood and chat with your potential neighbours—after all, who knows the community better than those who live in it?

 … But Don’t Wait Too Long

Your top choice could be hot property. There is nothing worse than falling in love with a home and mentally moving in, only to have your hopes snatched away by another, faster-moving buyer. Depending on the market, you might have to act fast. Make sure your financing and shortlist of must-haves are in order so you can move quickly when the time comes.

Get That Home Inspection

We’ve all heard the horror stories: someone forgoes an inspection on their dream home, only to move in and find out there are major issues an inspector would have caught. To avoid unforeseen expenses, CMHC recommends that all home buyers have a home inspection completed to make them aware of any required repairs or replacements. Knowing about issues in advance will allow you to make an educated decision about what might be your largest single purchase, ever. To find an inspector, ask a friend or family member for a recommendation, or contact the Alberta Professional Home Inspectors Society.

Plan For Fees

We’ve all heard of “closing costs,” but do we actually know what these fees entail? Although the seller pays the real estate agents’ fees, buyers have their own set of costs to settle before taking possession. According to ATB Financial, you can expect to pay around 2% of the purchase price of your new home on costs associated with closing. These might include a property appraisal, home inspection or condominium document review, in addition to lawyers’ fees. You might also need to budget for adjustments for utilities and taxes the seller has already paid, as well as your own moving costs. Do this math ahead of time and avoid feeling strapped for cash on possession day.

 Take Advantage of Programs and Credits

 Short on your down payment but have a healthy registered retirement savings plan (RRSP)? The Government of Canada’s Home Buyers’ Plan allows buyers to withdraw from an RRSP up to $25,000 in a calendar year to buy or build a home.

If you’re looking at a fixer-upper, consider talking to your broker or lender about a Purchase Plus Improvements mortgage. This CMHC program allows buyers to borrow up to 10% of the as-improved value of their home, and to roll that into their mortgage. Think of it as borrowing in advance on equity you create through your renovations.

When you file your income taxes for the year of your home purchase, don’t forget to claim the non-refundable $5,000 First-Time Home Buyers’ Tax Credit, which could put up to $750 in tax savings back into your pocket.

Choose the Right Real Estate Agent
There is one person who can help you navigate all the ins and outs of your first-time home purchase (and every home purchase thereafter): your real estate agent. Not all agents are the same, and you require someone who meets your needs and expectations. Ask friends, family members and colleagues for their recommendations, and then read verified reviews about their recommended agents at RankMyAgent.com.

Purchasing your first home is a major life milestone, and with good planning, it doesn’t have to be stressful. By choosing an agent who is a good fit for you and following these tips and suggestions, you can rest assured that your first-time home-buying experience is memorable for all the right reasons.

The post First-Time Buyers Beware: How to Avoid 11 Common Mistakes first appeared on RankMyAgent - Trusted resource about Buying, Selling and Renting.