1. Determine Your Target Down Payment

• The minimum down payment required depends on the price of the home:
• For homes under $500,000, you need a minimum of 5%.
• For homes $500,000 to $999,999, you need 5% on the first $500,000 and 10% on the portion above that.
• For homes $1 million or more, the down payment has been 20%.  However effective December 15, 2024, the cap for insured mortgages will be increased from $1 million to $1.5 million, with a down payment of less than 20 percent. The insured mortgage cap, which has not been adjusted since 2012, is being raised to $1.5 million

2. Start Saving Early

• Begin saving as early as possible to accumulate the necessary down payment.
• Set a savings goal based on the type of home you’re targeting and the expected down payment.

3. Automate Your Savings

• Set up automatic transfers into a dedicated savings account for your down payment.
• Consider high-interest savings accounts or GICs (Guaranteed Investment Certificates) to earn interest on your savings while keeping your funds safe.

5. Reduce Expenses and Build a Budget

• Cut down on discretionary spending (eating out, entertainment) to increase savings for your down payment.
• Create a monthly budget to track your progress and adjust your spending if needed.

6. Budget for Closing Costs

• Don’t forget to save for closing costs, which typically add 1.5% to 4% of the home’s purchase price. This includes land transfer tax, legal fees, home inspection, and more.