{"id":8991,"date":"2017-01-02T01:00:13","date_gmt":"2017-01-02T06:00:13","guid":{"rendered":"https:\/\/www.zoocasa.com\/blog\/?p=8991"},"modified":"2016-12-22T11:04:49","modified_gmt":"2016-12-22T16:04:49","slug":"how-to-save-for-a-down-payment-under-the-new-mortgage-rules","status":"publish","type":"post","link":"https:\/\/www.zoocasa.com\/blog\/how-to-save-for-a-down-payment-under-the-new-mortgage-rules\/","title":{"rendered":"How to Save for a Down Payment Under the New Mortgage Rules"},"content":{"rendered":"

Pulling together the funds for a down payment on a home will be one of the biggest things you ever save for. And with new mortgage rules<\/a> now in effect in Canada, it\u2019ll be even more difficult for buyers who can\u2019t pay more than 20% down on their homes to come up with the cash.<\/p>\n

Here are some pointers for coming up with the amount you need, despite new mortgage saving challenges.<\/p>\n

Come Up With a Goal<\/h2>\n

Before setting your savings goal, you need to know the amount you\u2019ll need to afford a home \u2013 you can\u2019t begin your home search without knowing this number. Start off with a bit of research, and find a neighbourhood that suits your needs and wants.<\/p>\n

When you know the prices of homes in your desired area, you\u2019ll have a better idea of how much you have to save. A mortgage affordability calculator<\/a> will help you estimate your maximum purchase price.<\/p>\n

Save For the Stress Test<\/h2>\n

Under the new rules implemented in October, buyers paying less than 20% down on their home purchase will need to qualify for a mortgage at the Bank of Canada\u2019s posted rate (currently 4.64%), even though the best five-year fixed rate mortgage in Ontario is less than half that rate.<\/p>\n

This means your affordability will decline by more than 20% if you\u2019re a high ratio borrower. It\u2019s important to calculate the BoC posted rate into your goal, as your savings and financials will need to be high enough to qualify.<\/p>\n

Once you know the amount you can afford, you can figure out how much you have to save every week, month, or year.<\/p>\n

Look For Additional Down Payment Sources<\/h2>\n

There are also other sources you may have overlooked for when saving for a down payment. You can break them down into lump-sum and monthly contributions.<\/p>\n

Lump-sum contributions can come from a range of different sources such as:<\/p>\n