We saved $95,000 in 16 MONTHS | How to get money for Downpayment | Save Money for a House in Canada

hello guys welcome to canadian parinday i'm so excited today should i share the

news oh yeah we should actually so guys two of our subscribers have

reached out to us on instagram sharing a very good news

recently and our videos have helped them being motivated and go for

the new construction so we are very happy because you know

our experience our things are actually helping someone

especially to you people sitting on that side of the camera and watching

us [Music]

a lot of people has asked us in different videos that how we actually

manage our down payment as we have told we manage 20 percent it

is a very important and crucial question in a nutshell this whole episode is

divided into three part how we save the money for down payment

our strategy to cut down our expenses and third how we make extra income to

save for the down payment exactly that's exactly what i said at

our time when we used to reach out to our friends

asking their experience how they saved monies they all used to say

cut down expenses don't go out don't go for vacation so basically

live a life without any use and we did follow those steps for a couple of

months not practical we have to sacrifice a lot

so that's how we actually came up with our own strategy that actually helped us

save a lot of money and in a better way exactly first thing

that you need to know is the amount of down payment you need to save

for example in our case we always targeted to go

for 350 to 400 000 house and for that we plan to have five

percent of down payment as we were looking into a reset

house that time but sooner after you know months of research

and being out in the market we realized it make more sense to go for the new

build house that was giving us extra 15 months

to save and which way we can actually jump from

five percent saving to 20 so i totally agree this time the market

is super crazy if you are out in the market

probably looking for 600 700 000 houses the figures for saving might

be different for you but the strategy remained the same

so second most important thing is how much time you needed to save this down

payment so say in our case since we moved our

strategy for buying a resale house to a brand new

home we got one and a half years which is a gain

advantage for us but it might be different for you say for example you

just started working and you probably need

two t4s generated in order to qualify the mortgage

that's a very good point because recently one of her friend he's

suffering as he don't have two t4s so neither of a bank is actually giving

him pre-approval and it's very this time is very

important as well because this is the time you are building your credit

history you are planning to get your 2t4 and in additional you are saving for

your down payment so these three things go hand in hand

[Music] the profile that deepak and i have

worked on here the salary ranges from 60 000 to 85 000

and our salary take home used to be 8174 after all the tax deduction so the

second most important thing is you have to find out how much

are your monthly expenses so in our case our expenses were 3 500 per month

but we will manage to lower it down to 2500

soon you will be seeing those strategies in the video so stay tuned

so we estimated that after 15 months after all the expenses our

savings will be 90 000 784 dollars so you'll probably be

thinking that oh now we save 90 000 so that's good enough

that's not the case because we take out twenty thousand dollars from that saving

and put it in an emergency fund so after taking out the

cash for the emergency fund our estimated amount has been reduced to

seventy thousand with the god for witness what if one of

the partner loses or her job or if there is any emergency

in the family that you need to support so it's always a good idea to have a

good amount of cash in your bank account to support you

at that uncertain time so the next important thing we did is we paid

all of our outstanding debts so be it be car payments

or any outstanding payment on the credit card we want to make sure

that all of them are properly paid up before we move into the mortgage step

this week when we're going for the house we make sure that we have no other

liability and our focus is just for the mortgage

[Music] so we have opened a separate account

with scotia bank that has a high saving

interest of 1.5 percent i know it's not a lot but then all the

money from the saving goes to that account

apart from that the 58 of that salary actually goes to

the tfsa account which is a tax-free saving account

which was further invested into different options

like mutual funds stocks bonds so with all these investment we got

another two thousand dollar added to our investment

[Music] so in top of that what we did is we got

a annual raise of around four thousand dollars both of us

we save that money and we actually put it in a separate account which we call

as india trip that we're gonna talk about

more [Music]

guys quick question for you so how much is the renting amount you're paying

right now don't forget to put that in comments below because we

are planning to make a video on renting versus buying

so your inputs will be really helpful now let's talk about the most exciting

part how we actually lower our expenses from

3 500 to 2500 which by the way was a big drop we did a

really good job on that you have to sit back relax take a deep

breath and you have to figure out what are your

luxury expenses are that you can cut and won't hurt you in a

bigger way what we started is we allocated budget

for everything for food for clothing for buying electronics so that budget was so

strict that whenever we went out for shopping we rather used to shop with the

cash making sure you know if cash is done no

more shopping time to go home and this happens because

if you shop with a credit card you end up shopping more than

out of your budget so that's a smart tip start shopping with the cash

instead of eating outside at work every day i started packing my own lunch

and that way we saved another thirty two hundred dollars

during that time we wanted to buy a bigger tv

but we hold that expense and instead use whatever we already had

by that we actually saved 1700 instead of going to gym how about by the

basic equipment that we actually use in our gym

and rather start practicing those in our home at our convenient time

this overall thing save us 1200 wait we used to buy around 100 worth of

stuff in terms of clothing bags and shoes

what we decided is we won't be buying a new stuff

unless we donate one then you know what with that technique we end up saving

another 1600 over the span of 15 months

is your inbox is also full of offer sales from your favorite brand

well at least mine were so in order not to fall into a trap of unwanted sale

i decided to unsubscribe from those brand

and for the item that was masked for us we start watching out

the sale on amazon or online portals and this way we save around six hundred

dollars talking about the vacation we both are

big time lovers of exploring different countries and city

so instead of going and exploring north america at that time you know we opted

to go and visit india meet our family and on

our way back we explored europe for a couple of days

now this way we get to utilize the time with our family

and we went out for a vacation as well so by

saving across all different things we ended up saving around fifteen thousand

dollars in the terms of fifteen months and which is

a lot of money [Music]

apart from the saving cutting down expenses we use a

different technique to make extra money and we call it side hustle right for the

side hustle that means earn an extra cash from something that

you would like to do so say for example you might like doing

stitching or you like to drive uber or say for example you like taking pets

for the walk basically any activity without killing

yourself so in our case i used to teach undergrad

students at my college time so what i did is i started taking classes in a

neighborhood only one student at a time for like five

hours in a week we also sold some of the stuff that we were not using for a long

time that got another 500 so in total we got

5300 by just doing all these things so now

our savings has been increased to 76 thousand dollars

okay google what's your time

here one thirty one p.m

so we don't have much time okay so one hour you might be thinking we are still

a few thousand shy from our target amount but we had a

little extra saving that we have kept separately now

those savings came from our previous smart tips that we

were doing like we said in our previous videos that we

always like renting in a low budget apartment than going for a luxury one

so we kind of saved around eight thousand dollars from that kind of

option we are the people who buy less expensive

card and rather prefer to save money for the down payment

so even now we have a honda civic 2010. so instead of going for the expensive

and you know the latest model car we prefer to go for the

car which was 10 000 less expensive and more economical on fuel that time so

we can save faster the car that we owned we paid it off

quite early so we kind of saved around two thousand

dollars in terms of loan payments and each and every dollar matters when

it comes to down payment and you know what because of all these we had 20

000 sitting in our account which was all from the savings

with all these strategies and tricks we were actually above our saving and we

are so proud of it that you know instead of getting

money from back home or bothering our families about it

we were actually able to save the money right and you know what that extra money

was very helpful in getting new things for the house the appliances and all

these things saving for a down payment looked like a

hard journey but this journey is possible if you

follow the smart tricks and try to cut down your expenses

i hope with our experience that really helps you and motivate you and

regardless which stage you are in buying the house if you find our videos

informative and get even the single input please please reach out to us and

let us know you are really making us happy by sharing this news

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is renting versus buying