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Power Saving for a home in Vernon BC
January 11, 2015
If you want the best mortgage rates, you’ll need a solid down payment. Saving for that down payment can be tough but with a few sacrifices and lifestyle changes you can power save your way to the home you want.
For instance, here are some drastic measures that will get you closer to your goal:
Get a cheaper place.
Yearly rent at $800 per month: $9,600
Minus yearly rent at $650 per month: $7,800
One-year savings: $1,800
Give up your car.
Estimated annual cost of gas, insurance and maintenance and parking: $5,000
Minus estimated annual cost of a bus pass and occasional car rental: $1,500
One-year savings: $3,500
Pack your lunch.
Estimated cost of buying lunch at $8 or so per day: $2,000
Minus cost of spending about $15 per week to stuff to make your lunch with: $750
One-year savings: $1,250
Try a staycation.
Summer vacation somewhere in the U.S.: $2,500
Minus the cost of a Staycation: $500
One-year savings: $2,000
Live a pet free life.
Food, vet, toys etc.: $1500
One-year savings: $1500
Disconnect the cable and landline.
Yearly cost of cable and home phone: $1,200
Minus approximate cost of a Netflix subscription: $110
One-year savings: $1,090
Eat out half as much. Or spend half as much when you do.
Annual cost of spending $250 monthly: $3,000
Minus half that annual cost: $1,500
One-year savings: $1,500
Put a limit on gift spending. Limit yourself to $50 or $100 per gift.
Yearly cost for a couple of buying presents for various occasions: $1,000
Minus using the $100 present limit: $500
One-year savings: $500
And finally, if you’re a saint or are particularly gifted at withstanding awkwardness, move in with your parents or in-laws.
Yearly rent at $800 per month: $9,600
Minus token rent payment to parents: $2,400
One-year savings: $7,200
If you can stand it, all of that adds up to about $18,000/year.
Once you’ve got your nest egg, approach a mortgage broker for the best advice on how to transform those savings into a new home.
Dawn Stephanshin is a Mortgage Specialist located in Vernon, BC