Designing a Mortgage That's Right For You!
Whether you are looking to purchase a Victoria, BC home in the next two years or you intend to wait another five, you must find a way to save up enough money to use for a down payment. Without the money to make a deposit on a house, it isn't likely that anyone will accept your offer to purchase their home. It’s likely you won't be able to qualify for a mortgage either unless you have a tidy sum of money for a down payment. Here is a look at several strategies you can use to help you amass a sizeable down payment for your home purchase.
Sell Your Car and Take Public Transportation
If you don't need your car because you can walk or take public transportation to work, you might want to sell it. Having a larger down payment can keep your mortgage payment affordable enough to allow you to take on a car loan once you've purchased your home.
Your monthly rent is probably the biggest expense that you have. If your lease is up, move back in with your parents or crash at a friend's place for the next year or two. Negotiate so that you don't have to pay any rent while you are staying there. For example, you can volunteer to mow the lawn, clean the house, and run errands. Take the money you save and place it into a savings account that you can use for a down payment.
Discontinue Cable TV, Premium Services, and Shopping Subscriptions
Discontinue all non-essential services and subscriptions, no matter how small the cost might seem. If you have to pay a membership fee, then you should unsubscribe. You probably do not need the service for the next couple of years. Plus, if you miss the service, you can always sign up again once you purchase your home.
Save Monetary Gifts, Bonuses, and Tax Refunds
While the extra cash might provide you with the pleasure of buying something you want but don't actually need, you should set it aside for the day you plan to buy your home. You can always make the purchase another time.
Become a Minimalist
Stop buying items that you do not actually need. For example, you can get creative and use shopping bags to wrap gifts and junk mail for scrap paper. Basically, if you don't absolutely need the item, simply do not purchase it.
Sell Off Collections
If you've been an avid collector of comic books, antiques, or some other valuable commodity, now might be an advantageous time to sell your collection. The money can increase the size of your down payment considerably, allowing you to purchase your home in a more timely fashion.
Avoid Expensive Dates, Vacations, and Meals
While it might be enjoyable to go on an expensive vacation or to dine out every weekend, the cost is going to make it that much harder to save up the money you need to buy a home. Whenever possible, avoid expensive recreational activities so that you can put the money to better use.
Use Coupons and Discounts
While it can be annoying to look for discounts and coupons, show them on your phone, or print them out, doing so can save you lots of money. You can take the savings and set it aside for your down payment. Don't fool yourself into thinking that an extra five dollars here and there isn't going to matter. Every cent that you save is one that you won't need to find later.
The size of your down payment is going to influence your ability to obtain a mortgage - as well as the size of your monthly obligation. Making a conscious effort to save money to use as a down payment is going to allow you to amass a larger sum than if you simply put away fifty dollars from each paycheck. Try to save money using as many ideas as possible so that you optimize your ability to achieve your goal of saving up for a large down payment on a home.
For more information on preparing for your next home purchase please contact us the Mortgage Designers your Victoria, BC Mortgage Brokers.