A down payment on a home is an investment in your future. In fact, it may be one of the biggest investments you’ll ever make. So what’s the best way to save?

Three tips to save a down payment

1. Keep the money apart from your other savings. That way, you’ll be less likely to spend it.

2. Find a way to grow your money safely. You don’t want to wake up a month before you plan to buy your home and find you have lost money due to a drop in the stock market.

3. If you’re a first-time buyer, you might want to save for a down payment in a Registered Retirement Savings Plan (RRSP). Under the government’s Home Buyer's Plan, you can take up to $25,000 from your RRSP for a down payment on your first home. You won’t pay any tax on the money as long as you pay it back over the next 15 years. You have 2 full years grace period after the year you purchased your home in before you are required to start paying the money back into your RRSP.


What are some safe places to invest while I save for a down payment?


• High-interest savings account


• Guaranteed Investment Certificate (GIC)


• Canada Savings Bond (CSB)


• Money market fund


Remember: It takes time to save up a down payment

You can speed up the process if you invest your money so it will grow. Just don’t take more risk than is comfortable for you.


The above information was taken from an article in the Investor Education section of the Globe & Mail, last updated, Aug. 24th, 2011.


Tony Marchigiano | Mortgage Specialist - Mortgage Sales BC Region, RBC Royal Bank | Royal Bank of Canada | T. 604-505-7109 | F. 778-737-0054


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Not surprisingly, with all the distractions of summer fun, on overwhelming amount of Canadians ( two thirds) tend to lose their focus on saving during the summer months- this according to findings of a new report from TD Canada Trust.

"Summer is a great time to relax and have fun with friends, but it doesn't mean you should take a vacation from your financial responsibilities," says Raymond Chun, Senior Vice President, TD Canada Trust. "If you take a little time to plan ahead and tweak your budget in preparation for your summer spending, you can make the most of the warmer weather without compromising your savings plan."

In a country that is subjected to long, harsh winters- and has summers that often feel too short and fleeting, many admit to feeling some seasonal impacts on their spending and on their saving. The report says, “Canadians attribute the lure of the summer sun, patios and travel opportunities as the cause of their lax attitudes towards their personal finances. Two-thirds say the weather makes them feel happier and more willing to spend money (66%) or that there are so many activities to enjoy in the summer they figure they'll make up the money in the colder months (64%). Six-in-ten attribute their splurges to eating and drinking out more with friends (61%) or taking more vacations (60%). “

"Summer vacations can certainly take a toll on your wallet. If you think you've been too carefree with your spending, there are simple things you can do to get your finances under control without compromising on summer fun so that you're in good financial shape by the end of the season," says Chun.

The best way to combat this seasonal lag in budgeting, is to make it part of the plan year-round- and to make it seamless and invisible as well. If saving is a habit that is engrained in your spending activity- before you even have access to funds, then it will continue on- regardless of the season. Automated saving is the way to go.

It is recommended to try to address debt issues before the summer months, and if possible to attack them before the increased spending of summer months arises.

It’s not just spending that takes a vacation alongside vacationing Canadians in the summer months: ”One-in-two Canadians admit they are also more lax in the summer in terms of keeping in touch with family (56%), exercising (55%), keeping their homes tidy (54%) and eating healthily (53%). One-in-ten say they are even more likely to call in sick to work.“

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