The Lowdown on Down Payments: Saving for a Home in Milton

Buying a home in Milton can feel like an impossible task these days. Home prices in this popular GTA suburb have risen sharply in recent years. Coming up with the standard 20% down payment on a Milton home can mean saving $100,000 or more. It’s enough to discourage even the most determined first-time homebuyer.

But take heart! There are ways to get into Milton’s hot housing market without breaking the bank on your down payment. Here’s the lowdown on strategies for saving up:

Know the Minimum You’ll Need

The minimum down payment to buy a home in Canada is 5% if the purchase price is under $500,000. On a $400,000 starter home in Milton, that’s just $20,000. Much more feasible than $80,000! Of course, the tradeoff is you’ll have to pay mortgage loan insurance. But knowing the minimum can set a savings goal that feels attainable.

Take Advantage of First-Time Buyer Programs

The federal First-Time Home Buyer Incentive offers 5% or 10% co-investment on newly built homes. This program essentially covers part of your down payment. Income caps do apply, but it’s worth checking eligibility. The City of Milton also offers qualifying first-time buyers an interest-free loan of up to 10% of the purchase price.

Use an RSP for Your Down Payment

Pulling from your RRSP through the Home Buyers’ Plan is a popular way to come up with down payment funds. You can withdraw up to $35,000 per person. While you do have to pay this amount back, it spreads the impact over a much longer period.

Choose the Right Bank Account

Opening a dedicated high-interest savings account at an online bank is a good way to squirrel away down payment money. Look for an account with at least 2% interest and no fees. Automated contributions are key for passive savings habits.

Take on a Side Gig

Bringing in extra income through freelancing, driving for a rideshare service or doing online surveys can really accelerate your savings. Even a few hundred extra dollars a month makes a difference. Some side gigs even let you set your own hours.

Stick to a Strict Budget

Cutting back on discretionary spending is easier said than done. But being disciplined now means getting into your dream home sooner. Try keeping a spending diary, limiting eating out or temporarily cancelling subscriptions. Small daily savings do add up.

Buy with Family

If the numbers aren’t adding up on your own, consider teaming up with family members to qualify for a mortgage together. The bank will factor in all co-purchasers’ incomes when determining the loan amount.

With persistence and creativity, saving up for a down payment in milton real estate is possible. Being flexible on timing and location while taking advantage of available incentives and supports can make homeownership a reality. Where there’s a will to own in Milton, there’s a way!

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