The ABC's on How to Save for a Downpayment

Learn%20MoreFor most people, your home will be the biggest and most important purchase you ever make.  My clients hear it from me all of the time, and I will share this with you:  the very best thing you can do as a buyer is BE INFORMED!  In the quest to ‘get your learn on’, I will help you, mortgage agents and lenders will help you, lawyers will help you…Google® will help you!


WHAT IS A DOWN-PAYMENT?  A down payment is, quite simply, a sum of money that you put towards the purchase of your home.

The more you have to start with, the less you’ll need to borrow (which means you will be paying LESS over time for your beautiful home!).

This means that your down payment is an investment in your future!

How do you save for this investment?  There is a great article in The Globe and Mail that outlines some key strategies for First Time Home Buyers like you:


Three tips to save a down payment

1. Keep the money apart from your other savings. That way, you’ll be less likely to spend it. (**look at automatic payments into your savings account)

2. Find a way to grow your money safely. You don’t want to wake up a month before you plan to buy your home and find you have lost money due to a drop in the stock market.

3. If you’re a first-time buyer, you might want to save for a down payment in a Registered Retirement Savings Plan (RRSP). Under the government’s , you can take up to $20,000 from your RRSP for a down payment on your first home. You won’t pay any tax on the money as long as you pay it back over the next 15 years.

What are some safe places to invest while I save for a down payment?piggybank

  • High-interest savings account – Every time you get paid, you can put some money into this account. When you’re ready to buy, you can easily get your savings out. For some people, that’s not a plus, however, because it’s a little too easy to take the money out and spend it on something else.
  • Guaranteed Investment Certificate (GIC)-  As your savings grow, you may want  to buy GICs. If you think you’ll be tempted to spend some of your savings, you can lock your money in with a GIC so that you can’t easily get at it.
  • Canada Savings Bond (CSB) – The federal government offers CSBs to  investors at certain times each year. They pay minimum interest and you  can invest as little as $100. One type of CSB is cashable any time.  Certain provinces also offer provincial savings bonds.
  • Money market fund – A money market fund is a mutual fund that invests in safe, short-term  products. The fund is run by a professional investment manager who invests      the money for you. You can get your money quickly and easily, usually  within 24 hours. However, like other mutual funds, there are fees to pay for having your money in the fund. There may also be fees for taking your money out.

Remember: It takes time to save up a down payment!

You can speed up the process if you invest your money so it will grow. Just don’t take more risk than is comfortable for you

Content in this section is provided in partnership with the Investor Education Fund, a non-profit organization promoting financial literacy to Canadians. To find out more go to Saving for a down payment


For more information on this or other interesting Real Estate topics, please get in touch for Moore today!  I look forward to helping you find your first home, as YOUR Guelph REALTOR®, Krystal Moore.

KMoore Fall 2012Krystal Moore, Sales Representative
Royal Lepage Royal City Realty, Brokerage
Independently Owned and Operated
214 Speedvale Ave. W.
Guelph, ON N1H 1C4
Phone: 519-821-6191
Direct: 519-400-8394
Fax: 519-821-6764


Why choose Krystal? 

I have over 15 years’ experience in Sales and Customer Service, I am motivated, dedicated
and have a solid background in law.  I consistently go above and beyond to make my clients
feel important, valued and appreciated!

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