[et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”55px||||false|false” global_colors_info=”{}” custom_margin__hover_enabled=”off|desktop” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on” da_disable_devices=”off|off|off”][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” width=”95%” max_width=”100%” custom_margin=”||-24px||false|false” custom_padding=”55px||||false|false” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][wahi_breadcrumb _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][wahi_breadcrumb-link title=”Real Estate 101″ _builder_version=”4.18.0″ _dynamic_attributes=”link_option_url” _module_preset=”default” link_option_url=”@ET-DC@eyJkeW5hbWljIjp0cnVlLCJjb250ZW50IjoicG9zdF9saW5rX3VybF9wYWdlIiwic2V0dGluZ3MiOnsicG9zdF9pZCI6IjcyMiJ9fQ==@” global_colors_info=”{}”][\/wahi_breadcrumb-link][wahi_breadcrumb-link title=”Buy” _builder_version=”4.18.0″ _dynamic_attributes=”link_option_url” _module_preset=”default” link_option_url=”@ET-DC@eyJkeW5hbWljIjp0cnVlLCJjb250ZW50IjoicG9zdF9saW5rX3VybF9wYWdlIiwic2V0dGluZ3MiOnsicG9zdF9pZCI6IjE2MzIifX0=@” global_colors_info=”{}”][\/wahi_breadcrumb-link][wahi_breadcrumb-link title=”@ET-DC@eyJkeW5hbWljIjp0cnVlLCJjb250ZW50IjoicG9zdF90aXRsZSIsInNldHRpbmdzIjp7ImJlZm9yZSI6IiIsImFmdGVyIjoiIn19@” _builder_version=”4.18.0″ _dynamic_attributes=”title” _module_preset=”default” module_text_color=”#686E6E” global_colors_info=”{}”][\/wahi_breadcrumb-link][\/wahi_breadcrumb][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”12px||12px||false|false” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _dynamic_attributes=”content” _module_preset=”default” header_font_size=”3.5rem” header_line_height=”4.5rem” header_font_size_tablet=”42px” header_font_size_phone=”3rem” header_font_size_last_edited=”on|phone” header_line_height_tablet=”4.5rem” header_line_height_phone=”3.2rem” header_line_height_last_edited=”on|desktop” global_colors_info=”{}”]@ET-DC@eyJkeW5hbWljIjp0cnVlLCJjb250ZW50IjoicG9zdF90aXRsZSIsInNldHRpbmdzIjp7ImJlZm9yZSI6IjxoMT4iLCJhZnRlciI6IjwvaDE+In19@[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”4px||9px|||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][wahi_socialsharing _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][\/wahi_socialsharing][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”6px|||||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” text_font_size=”24px” text_line_height=”1.5em” custom_margin=”||15px|||” global_colors_info=”{}”]<\/p>\n
Check out our tips, strategies, and tools for saving for your first home.<\/span><\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.27.4″ _module_preset=”default” text_font_size=”1.13rem” text_line_height=”1.18rem” custom_margin=”||5px|||” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″]By Emily Southey<\/a> | 10 minute read[\/et_pb_text][et_pb_post_title title=”off” author=”off” date_format=”M j” categories=”off” comments=”off” featured_image=”off” _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_post_title][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” width_tablet=”” width_phone=”100%” width_last_edited=”on|phone” max_width_tablet=”” max_width_phone=”100%” max_width_last_edited=”on|phone” custom_padding=”21px||||false|false” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_image src=”@ET-DC@eyJkeW5hbWljIjp0cnVlLCJjb250ZW50IjoicG9zdF9mZWF0dXJlZF9pbWFnZSIsInNldHRpbmdzIjp7fX0=@” align=”center” force_fullwidth=”on” _builder_version=”4.18.0″ _dynamic_attributes=”src” _module_preset=”default” custom_padding=”2px|||||” border_radii=”on|32px|32px|32px|32px” border_radii_tablet=”on|32px|32px|32px|32px” border_radii_phone=”on|0px|0px|0px|0px” border_radii_last_edited=”on|phone” global_colors_info=”{}”][\/et_pb_image][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”||40px|||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” text_font_size=”21px” text_line_height=”1.6em” header_2_font=”||||||||” header_2_font_size=”36px” header_2_line_height=”1.3em” header_3_font_size=”1.25rem” header_3_line_height=”1.88rem” header_4_font=”|700|||||||” header_4_font_size=”1.25rem” header_4_line_height=”1.88rem” global_colors_info=”{}”]<\/p>\n Budgeting effectively and minimizing costs are key components of saving for a home. But did you know that there are other methods of saving money to buy your first home, like opening a first home savings account or using our Wahi price tool? We break down some of the most effective methods of saving money and provide further tips on how to avoid overspending on a home in the future.\u00a0<\/p>\n \u00a0–<\/span><\/p>\n Saving money for a new home requires time and patience. But using the methods below may allow you to add to your savings more efficiently.\u00a0<\/p>\n \u00a0–<\/span><\/p>\n One way to help you save money when buying a home is to borrow from your Registered Retirement Savings Plan (RRSP). The Home Buyers\u2019 Plan (HBP) is a federal assistance program designed to help Canadians purchase their first homes. It works by allowing buyers to withdraw funds from their RRSP to buy (or build) qualifying homes. Under the HBP, first-time homebuyers can withdraw up to $35,000 tax-free from their RRSP, as the amount withdrawn is paid back on time (buyers have 15 years to pay back the withdrawn funds). To be eligible for the Home Buyers\u2019 Plan, you must meet the following criteria:<\/p>\n \u00a0–<\/span><\/p>\n \u00a0–<\/span><\/p>\n Ultimately, borrowing money from your RRSP can be a great way of saving money for a home, especially if you need money for a down payment<\/p>\n \u00a0–<\/span><\/p>\n Another way to save money when buying a home is to open a first home savings account. In the 2022 budget, the federal government proposed the introduction of a\u00a0Tax-Free First Home Savings Account (FHSA).<\/a><\/span>\u00a0This new registered savings account would give prospective first-time homebuyers the ability to save up to $40,000 tax-free. Similar to an RRSP or a Tax-Free Savings Account (TFSA), any contributions made would be tax deductible, and withdrawals to purchase a first home would be non-taxable. The 2022 federal budget outlined some further details about the proposed FHSA, including an $8,000 annual contribution limit alongside the \u00a0 $40,000 lifetime contribution limit. As of now, the federal government expects to open up an FHSA option to Canadians in 2023.<\/p>\n \u00a0–<\/span><\/p>\n A third way to save money when buying a home is to take advantage of Wahi<\/p>\n \u00a0MyBuy<\/a><\/span>. Wahi offers many tools to users, from the Bestimator to the GTA Neighbourhood Finder. MyBuy is designed to reduce costs and make it less expensive to buy a home. It works as follows: When you purchase a home using Wahi MyBuy, Wahi eliminates up to 70% of the commission paid on every sale. These savings then go back to the buyer, with payment made approximately two weeks after the closing of the property. On average, this 70% savings equates to roughly 1.5% of the purchase price, which, for a GTA<\/a> (Greater Toronto Area) home, can mean as much as $20,000 back in your pocket.<\/p>\n \u00a0–<\/span><\/p>\n Another tip for saving money for a home is to pay off any outstanding debt. This is usually a great first step as mortgage lenders will assess your current debt levels when deciding whether to approve you for a loan and at what rate. The more debt you have, the higher your interest rate is likely to be, and therefore, the more expensive your mortgage payments will be. Conversely, if you have little to no debt, you may qualify for a lower interest, which makes buying a home cheaper in the long run.<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” background_color=”#edf7f3″ custom_padding=”32px||32px||true|false” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on” da_disable_devices=”off|off|off”][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” header_2_text_align=”center” header_2_text_color=”#38505b” header_2_font_size=”2.63rem” header_2_line_height=”3.75rem” max_width=”800px” module_alignment=”center” header_2_font_size_tablet=”32px” header_2_font_size_phone=”27px” header_2_font_size_last_edited=”on|phone” header_2_line_height_tablet=”3.75rem” header_2_line_height_phone=”32px” header_2_line_height_last_edited=”on|phone” global_colors_info=”{}”]<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”||24px||false|false” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on” da_disable_devices=”off|off|off”][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”||43px|||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” text_font_size=”21px” text_line_height=”1.6em” header_2_font=”||||||||” header_2_font_size=”36px” header_2_line_height=”1.3em” header_3_font_size=”1.25rem” header_3_line_height=”1.88rem” header_4_font=”|700|||||||” header_4_font_size=”1.25rem” header_4_line_height=”1.88rem” global_colors_info=”{}”]<\/p>\n Getting pre-approved for a mortgage will give perspective homebuyers a better idea of how much they can afford to spend on a home, as well as how much they need to save. A mortgage lender will assess your current finances, credit score, and debt-to-income ratio to determine the amount you may qualify for and what rate. This will give you an idea of how much your monthly mortgage payment will be, and from there you can come up with a financial plan to ensure you meet them.<\/p>\n \u00a0–<\/span><\/p>\n Avoid overspending on your future home by following the tips below.<\/p>\n \u00a0–<\/span><\/p>\n One way to save money when buying a home is to partner with an experienced REALTOR\u00ae. Using a reliable REALTOR\u00ae who knows the local market and has a proven track record can help you save money. They will do a comparative market analysis on your behalf to ensure you don\u2019t overspend on a home and can give you expert advice when it comes time to make an offer.\u00a0<\/p>\n \u00a0–<\/span><\/p>\n The larger your down payment, the more money you can save. Mortgage lenders are far more likely to offer lower interest rates to borrowers who make 20% down payments as opposed to borrowers who make 5% down payments.\u00a0<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.24.2″ _module_preset=”default” min_height=”35px” custom_padding=”0px||0px||true|false” da_disable_devices=”off|off|off” global_module=”1002″ saved_tabs=”all” locked=”off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”54px||48px|||” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on” da_disable_devices=”off|off|off”][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” text_font_size=”21px” text_line_height=”1.6em” header_2_font=”||||||||” header_2_font_size=”36px” header_2_line_height=”1.3em” header_3_font_size=”1.25rem” header_3_line_height=”1.88rem” header_4_font=”|700|||||||” header_4_font_size=”1.25rem” header_4_line_height=”1.88rem” global_colors_info=”{}”]<\/p>\n Another way to save money when buying a new home that also relates to your mortgage is by increasing your credit score as much as possible. Mortgage lenders will evaluate your creditworthiness when deciding whether to approve you for a mortgage loan and at what rate. The higher your credit score, the more financially responsible you appear, and the better your odds of qualifying for a lower interest rate.\u00a0<\/p>\nMoney-Saving Methods When Buying a Home<\/h2>\n
Borrow from your RRSP<\/b><\/h3>\n
\n
Open a First Home Savings Account<\/b><\/h3>\n
Use the Wahi price<\/b><\/h3>\n
Pay off outstanding debt<\/b><\/h3>\n
“A third way to save money when buying a home is to take advantage of Wahi MyBuy. Wahi offers many tools to users, from the Bestimator to the GTA Neighbourhood Finder. MyBuy is designed to reduce costs and make it less expensive to buy a home.”<\/h2>\n
Estimate mortgage payments by getting pre-approved for a mortgage<\/b><\/h3>\n
Twelve Tips to Save Money on a New Home<\/h2>\n
1. Work with an experienced REALTOR\u00ae<\/b><\/h3>\n
2. Save at least 20% for the down payment<\/b><\/h3>\n
3. Improve your credit score<\/b><\/h3>\n