Saving for a down payment can feel like a major hurdle, especially with Canada’s rising cost of homes. While traditional savings plans and automated deposits are great, sometimes you need to get a little creative to reach your goal.
Whether you’re a first-time homebuyer or looking for a new home, here are some outside-the-box (yet totally doable) ideas to help fund that down payment.
Start by selling items you no longer use. Furniture, electronics, designer clothing, baby gear, tools, and even unused gift cards can all add up. Use platforms like Facebook Marketplace, local classified websites, Poshmark, or local consignment shops.
This will not only bring in extra cash but also lighten your load when it comes time to move.
If your household has two vehicles, downsizing to one (even temporarily) can bring significant savings. You’ll reduce costs on insurance, maintenance, gas and registration. This move alone could save you hundreds of dollars a month, all of which can go straight to your down payment fund.
Plus once you sell the car, that’s one large chunk of change to add to your down payment savings account.
This new registered savings account in Canada lets first-time homebuyers save up to $8,000 per year (to a max of $40,000) tax-free. Contributions are tax-deductible, and withdrawals for a qualifying home purchase are also tax-free.
If you’re eligible, this is a no-brainer.
Take on a short-term gig like dog walking, tutoring, freelancing, or weekend catering. Choose something flexible that fits your schedule. Take a passion or a hobby and see if you can make it into a side hustle for your home.
Dedicate every dollar earned to your down payment goal. Even $200 extra a month can make a noticeable difference over a year.
If your current home has extra space, consider renting it out short-term on Airbnb (if legal where you live) or long-term to a roommate. If you’re living with family, ask if you can contribute household chores or renovation help in exchange for reduced rent, so you can save more aggressively.
Many lenders allow gifted down payments from immediate family members. If a parent or grandparent is able and willing to help, this can significantly accelerate your homebuying timeline.
Make sure the gift is documented properly, as lenders will typically require a gift letter. I have many blog posts on this topic that you can find here.
Take your future estimated mortgage payment and start putting that amount into a dedicated savings account each month. Not only will this help you build your down payment fund, but it also gives you a taste of what the monthly commitment will feel like.
Consider holding off on big expenses like vacations, new furniture, or tech upgrades. Redirect that spending toward your goal. A few “no-spend” months can move the needle faster than you think.
Any extra cash that comes your way — like a tax refund, work bonus, or inheritance — can supercharge your savings. It’s tempting to splurge, but staying focused on your long-term goal can make that future home feel even more rewarding.
Let your home be your splurge!
If you’re open to creative housing arrangements, consider buying with a friend, sibling, or another couple. Co-ownership is becoming more common and can significantly reduce the amount each party needs to contribute for a down payment.
Getting into the housing market might take some sacrifice, but with a little creativity and determination, that down payment is within reach. It’s all about shifting priorities, maximizing resources, and staying focused on the bigger picture — your dream of homeownership.
Ready to explore your mortgage options or talk through your savings strategy? Let’s chat — I’d love to help guide you toward your next home. Give me a call at 250-826-3111, apply on my website or contact me through my online contact form to start the process today.
Let’s get your application off the ground.
