Thank you for your question.
Saving to buy a house for a young adult can be overwhelming at times, which is why most millenials feel as if they can't afford to buy a new home. But, there are many different things an individual can do to make the process less stressful and to get to the financial goal towards a down payment quicker.
1.The first step should be to pay off any credit card debt you might have accumulated over the years.
Then we would suggest saving more from work, open up a tax free savings account and every paycheque you receive a portion of that should go into your savings account.
2. Borrow from your RRSP; you can withdraw up to $25,000.00 from your RRSP to buy your first home!
Often cities have programs where they provide first time home buyers with part of their required down payment as an interest free loan!
4. Another great thing to do would be to check your credit every so often as your ability to borrow and the rate you receive is very dependent on one’s credit score!
5. Lastly, we would advise first time home buyers to start a budget!
Using a spreadsheet to establish a budget is the best way to visually see how much your monthly gross income is and how much your monthly expenses are.
Another side note would be to not just save up for a down payment when purchasing a home but the other expenses that come with along with it, such as furniture, heating, taxes, home insurance and maintenance.
I hope this information was helpful and useful. Feel free to have a look at the other services we offer:
Feel free to contact us if you have any other mortgage or loan related questions.