There a few things you need to plan for when saving for a down payment. Some of these include; clear income insight, clarity, precise expense information in all areas of your life, and also a detailed strategic plan.

Income

If you're trying to save money, you must determine how much money you have available to save. You also must get a clear expectation regarding your income. Writing this down is always going to be the best way to move forward. If you have a set income every month or receive salary this might be simple.

It’s also important to include any variable income revenue that you may have including overtime, bonuses, or different varying shifts that you may have. You can also include things like tax returns, child tax benefits or government benefits.

Expenses

While income is very important expenses are equally important. Once you have figured out what you have available to work with the next step is to figure out how much you usually spend to maintain your current lifestyle. First identify your reoccurring bills and then look at your extra spending. If there is a budget you already work off you should identify these numbers easily. If you don’t work off a budget, you will find this activity to be very helpful. You could always grab a few months bank statements so that you are accurate when coming up with your numbers.

Accurate information is key to find clarity. The more information you can access, the more equipped you will be. Similar to how we came up with your income numbers, write down all your expenses and this will allow you to figure out where you spend your money.

A Personalized Plan

Once you’ve identified your income and expenses you can plan on how to make more money than you spend. That sounds simple but it really isn’t. Most Canadians these days spend more than they make. If you’re spending more than you make, you need to either increase what you’re bringing in, or decrease what you put out. How you will do this is completely your decision.

People work better when they have a plan to follow so if you’re still reading this article chances are you are looking to purchase a home in the future and you need some help saving for a down payment.

A mortgage expert will help you navigate through all the different ins and outs of mortgage financing. We can help when it comes to saving for a down payment, managing income and expenses and finally getting approved for your mortgage. We can put together such a strategic plan that involves so much more than just saving for your down payment. There are several things that you can be doing at the same time to change your financial future and raise your chances of qualifying for a mortgage sooner. Contact us anytime the clear and detailed information you need to move forward feeling confident with a successful foolproof plan in place. We are here for you.