How to Save Money for a Downpayment & Buy a Home Sooner
Zach Silverman | January 8, 2025
Are you dreaming of homeownership but struggling to save for a down payment? Whether you’re looking to buy your first home or move up to a bigger property, saving smartly is the key to making homeownership a reality.
Here’s how you can assess your finances, cut unnecessary expenses, and create a savings plan that gets you into your dream home faster.
Step 1: Know Your Income
Before you can start saving, you need clarity on your income. Create a list of all your income sources, including:
- Take-home salary (after taxes)
- Variable income (overtime, tips, bonuses, commissions)
- Government benefits (child tax benefits, pensions, etc.)
- Annual income sources (tax returns, side hustles)
By tracking all sources of income, you’ll know exactly how much money you have available to save.
Step 2: Track Your Expenses
Most people underestimate their spending. To get a clear picture of your finances, analyze the past 3-6 months of expenses, including:
- Fixed expenses (rent, utilities, insurance, phone bills)
- Discretionary spending (eating out, shopping, subscriptions)
- Debt payments (credit cards, car loans, student loans)
Once you have everything listed, identify areas where you can cut costs to free up money for your down payment.
Step 3: Build a Savings Plan
Now that you know your income and expenses, create a savings plan:
- Set a goal – Determine how much you need for your down payment (5%, 10%, or 20% of your target home price).
- Automate savings – Set up automatic transfers to a separate down payment savings account every payday.
- Reduce unnecessary expenses – Cut back on dining out, impulse shopping, and unused subscriptions.
- Find extra income – Consider freelancing, selling unused items, or taking on a side hustle.
Step 4: Improve Your Mortgage Readiness
Saving is just one piece of the puzzle—qualifying for a mortgage is another! Lenders look at your income, credit score, and debt levels when assessing mortgage applications.
- Check your credit score and improve it by paying bills on time.
- Lower your debt to improve your debt-to-income ratio.
- Talk to a mortgage professional early to explore your options.
Step 5: Get Expert Mortgage Advice
At Silverman Mortgage, we help you create a customized plan to save for a down payment and qualify for a mortgage faster. Our team can:
- Analyze your financial situation and recommend strategies
- Guide you on down payment options (gifted funds, first-time buyer incentives)
- Find the best mortgage solution tailored to your needs
💬 Ready to take the next step? Contact Silverman Mortgage today for a free consultation and start your journey to homeownership!

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In recent years, housing affordability has become a significant concern for many Canadians, particularly for first-time homebuyers facing soaring prices and strict mortgage qualification criteria. To address these challenges, the Canadian government has introduced several housing affordability measures. In this blog post, we'll examine these measures and their potential implications for homebuyers. Increased Home Buyer's Plan (HBP) Withdrawal Limit Effective April 16, the Home Buyer's Plan (HBP) withdrawal limit will be raised from $35,000 to $60,000. The HBP allows first-time homebuyers to withdraw funds from their Registered Retirement Savings Plan (RRSP) to use towards a down payment on a home. By increasing the withdrawal limit, the government aims to provide young Canadians with more flexibility in saving for their down payments, recognizing the growing challenges of entering the housing market. Extended Repayment Period for HBP Withdrawals In addition to increasing the withdrawal limit, the government has extended the repayment period for HBP withdrawals. Individuals who made withdrawals between January 1, 2022, and December 31, 2025, will now have five years instead of two to begin repayment. This extension provides borrowers with more time to manage their finances and repay the withdrawn amounts, alleviating some of the immediate financial pressures associated with using RRSP funds for a down payment. 30-Year Mortgage Amortizations for Newly Built Homes Starting August 1, 2024, first-time homebuyers purchasing newly built homes will be eligible for 30-year mortgage amortizations. This change extends the maximum mortgage repayment period from 25 years to 30 years, resulting in lower monthly mortgage payments. By offering longer amortization periods, the government aims to increase affordability and assist homebuyers in managing their housing expenses more effectively. Changes to the Canadian Mortgage Charter The government has also introduced changes to the Canadian Mortgage Charter to provide relief to homeowners facing financial challenges. These changes include early mortgage renewal notifications and permanent amortization relief for eligible homeowners. By implementing these measures, the government seeks to support homeowners in maintaining affordable mortgage payments and mitigating the risk of default during times of financial hardship. The recent housing affordability measures announced by the Canadian government are aimed at addressing the challenges faced by homebuyers in today's market. These measures include increasing withdrawal limits, extending repayment periods, and offering longer mortgage amortizations. The goal is to make homeownership more accessible and affordable for Canadians across the country. As these measures come into effect, it's crucial for homebuyers to stay informed about the changes and their implications. Consulting with a mortgage professional can help individuals explore their options and make informed decisions about their housing finances. If you're interested in learning more about these changes and how they may affect you, please don't hesitate to connect with us. We're here to walk you through the process and help you consider all your options and find the one that makes the most sense for you.