To buy a home we all need money. That may be arranged in the form of a mortgage or saving or a mixture of both. The last way is very popular.
In order to pay some money (down payment + closing costs) at the time of buying a home we all need to work very hard and save. If you are able to manage save a sizable a down payment that can save you thousands of dollars over time. The reason of the saving is you will start with a smaller mortgage. A down payment over 20% (less than 80% Loan to Value ratio) may help you save on mortgage default insurance premiums - Which also adds up on your mortgage.
- Do not keep your saving in to low paying account. Try to find a good interest paying account.
- If you understand investing risks then try to talk to a licensed financial advisor, ask about short term investment options.
- You may also be eligible to withdraw money from your RRSP tax free. You will be given plenty of time to pay back.