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Can't Afford to Buy a New Home

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Cant Afford to Buy a New Home
 
Can't Afford to Buy a New Home
 

Hi Team,

 

What advice would you give a young adult who feels they’ll never be able to afford to buy a home? What steps should be taken?


The task of saving up the minimum down payment can seem like such a daunting tasks, and well close to impossible to attain.


What are some things young millennials need to keep in mind when trying to buy a home?

 
Thanks!
 
 

Answers

By Canadalend

 Hi RHamilton,

 
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!

 
 3. Another great idea would be to see if your city has a First Time Homebuyers Program!

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:
 
Canadalend solutions
 
Feel free to contact us if you have any other mortgage or loan related questions.
 
Canadalend Contact Us
 
 
 
6 comments
Level 4 (XP: 1150)
9 months ago
i feel as if a lot of the younger generation is going to feel this way. millennials are basically screwed when it comes time to buy a home
Level 3 (XP: 650)
9 months ago
Remember to contact the Canadlend team for more information about the services we provide
Level 7 (XP: 2550)
10 months ago
excellent tips, so helpful!
Level 4 (XP: 1400)
12 months ago
this is very useful and helpful information for those looking for mortgage solutions
Admin
Canadalend
last year
Thank you for your comment, we're glad that this info has been helpful to you.
Level 3 (XP: 950)
last year
OMG thanks for the advice. always looking forward to the great responses.

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