If you're here, chances are you're struggling to save up for a down payment while renting. It almost feels like you're throwing away money on rent instead of investing in a home.
Throughout my experience as an Oakville real estate agent, I've watched many clients face the same situation. It requires discipline and a solid strategy to manage your finances effectively. This will allow you to save for a home in Oakville or surrounding areas while renting.
Also, there's some important news you might not have heard yet. Starting in December, the mortgage rules are changing.
I’m sure you've been dreading the $200,000 down payment needed to purchase a home in Ontario over one million. Well, starting in December, you’ll only need $75,000 to make it happen.
If you’re a first-time home buyer, you’re in for a treat with the eligibility for a 30-year mortgage. This will make it much easier to handle your monthly payments and move into your new home in Oakville.
Quick Tip: Before we get into the rest, go check out our mortgage affordability calculator to see the numbers for yourself.
FIND A MORE AFFORDABLE RENTAL
CONSIDER A NEW LOCATION
Yes, downtown Oakville has it's perks, but the suburbs might just surprise you with their affordability. While it's tempting to stay put for convenience, exploring new neighborhoods could lead to significant savings. But, don’t rush it! Take the time to thoroughly research different areas.
Suburban spots often boast lower rents compared to downtown Oakville's hustle and bustle. However, it’s crucial to consider the trade-offs, like potential increases in commute costs. Whether it’s extra gas money or more time on public transit, factor these into your budget to ensure the move actually pays off.
Remember, finding the right place is about balancing affordability with your lifestyle needs. Sometimes, a slight increase in commute time is worth the plunge in rental costs, especially when those savings help pad your down payment fund for a future home.
RENT IN THE WINTER TIME
Did you know that rental prices often drop in the winter? This makes December to March the ideal time for house hunting. Fewer people are looking to move during the colder months, giving you an upper hand in negotiations for a better rental deal.
NEGOTIATE (DON'T BE SCARED)
Spot some peeling paint or a leaky faucet? Use these as bargaining chips to negotiate down the rent. If you're good with your hands, offer to fix minor issues in exchange for a rent reduction. It’s a win-win!
CUT DOWN COSTS ON CURRENT RENTAL
GET A LONG-TERM RENTAL
Long-term commitments can lead to lower rents since landlords love the stability. If you can promise a few years, you’re likely to lock in a better rate.
By securing a longer lease, you not only reduce your rental expenses but also avoid the hassle and costs associated with frequent moves. This stability allows you to better plan your finances, setting a solid foundation for your savings goals.
RENT UNFURNISHED
Unfurnished rentals usually come with a lower price tag. If you already have furniture or don’t mind hunting for second-hand gems on Facebook Marketplace, you can save a ton.
AVOID THE EXTRAS
Take a look at the amenities included in your rent. If there are features like a parking spot or cable package that you don't use, discuss removing them with your landlord.
This could significantly reduce your monthly expenses. Landlords might be willing to renegotiate your rent or allow you to sublet the parking space to someone else, further decreasing your costs. By eliminating unnecessary extras, you can streamline your expenses and allocate more towards saving for a down payment.
THE LIFESTYLE ADJUSTMENT
When it comes to saving for a home while renting, it’s all about the lifestyle adjustments you make.
Consider getting a roommate to split the cost of rent and utilities, which can significantly decrease your monthly expenses.
Make an effort to reduce utility usage. Simple actions like taking quicker showers, turning off lights when they’re not needed, and setting your AC or heat to a consistent temperature can save more than constantly adjusting it. Each of these small changes can incrementally boost your savings.
Be mindful of your spending habits too, such as cutting back on eating out and resisting online shopping sprees.
Protecting your deposit by maintaining the rental property can also add to your savings, ensuring you have more funds available when you're ready to move. By embracing these lifestyle changes, you not only save money but also prepare yourself for the financial responsibilities of homeownership.
THE BOTTOM LINE
Saving for a home while renting in Oakville isn't just about cutting costs—it’s about making smart choices that align with your future. If you’re unsure where to start or need insight into Oakville real estate opportunities, reach out to me and my team of Oakville Realtors. We're here to help you make the most out of your current situation while preparing for future homeownership.
Call 289-334-0820 to get started!
Post a comment