Canada’s housing market hasn’t been this stable in a long time. Home prices and sales are almost holding steady and more homes are up for sale but not overflooding the market. In fact, home prices saw their sharpest monthly decline in more than 14 years in October 2024. On top of that, the government has rolled out many new measures to help with affordable housing. But despite all this, many Canadians are still struggling to enter the housing market.

Are you also finding yourself in this same boat? Have you been wondering how some buyers are still able to afford a home in this market? If so, this blog is just for you. Some financial hacks can help you achieve your homeownership goal faster – even if you are still short on your savings goal. 

Smart Hacks That Can Get You Into Your Dream Home Sooner Than You Expected

1. Explore Down Payment Assistance Programs

You can get help from the down payment assistance programs offered by the government and some private organizations. These programs can come in the form of grants, low-interest loans or even forgivable loans. Even if the assistance doesn’t cover your entire down payment, it can give you a huge boost.

2. Start a Side Hustle for Extra Cash

Even an extra $500 – $1000 a month can make a big difference! This extra income can go directly into your homebuying funds, and make housing more affordable for you. And no, you don’t have to work a second full-time job – there are plenty of flexible options. You just need to think about what you enjoy or what skills you already have. You could freelance online, drive for a rideshare service, pet sit, or sell crafts. 

3. Trim Your Expenses and Save More

Cutting expenses doesn’t mean you have to stop enjoying life and live like a monk. But it does mean making smarter choices about where your money goes. To try out this strategy, take a hard look at your monthly bills and see where you can cut back. You might be able to cancel a few subscriptions, find cheaper alternatives for brand-name products, or cook at home more often. Once you identify and cut back on unnecessary expenses, redirect that money straight into your home savings account.

4. Try House Hacking to Reduce Housing Costs

House hacking is a clever strategy through which you can lower your housing costs. Basically, in this affordable housing strategy, you generate income from your new home. The idea is simple: buy a home and rent out part of it to cover your mortgage payment. For instance, you can get a single-family home and rent out the basement suite. 

5. Consider a Rent-to-Own Agreement

You can try out this strategy if you are not ready to buy a home right now but want to lock in a property. In the rent-to-own setup, you rent a home with the option to buy it after a set period. A portion of your rent may even go toward the purchase price, helping you build equity over time. This strategy gives you time to improve your credit and save for a down payment while already living in your future home.

6. Look for Special Mortgage Programs Based on Your Career

Some lenders offer special mortgage programs for people in specific professions. For example, healthcare workers, teachers, and military members. These professionals may qualify for a lower down payment or better interest rates. So, make sure to check for these special mortgage programs while buying a home. These programs can make homebuying much more affordable for you just like the down payment assistance programs. 

7. Pay Off Debt and Free Up More of Your Income

Want to know one of the main reasons why people are struggling with affordable housing? It’s because a major chunk of their monthly paycheck goes towards existing debt – student loans, car loans, credit cards, etc. This is why, if possible, focus on paying off high-interest debt before stepping into the home-buying process. Not only will this free up more of your income, but it will also improve your debt-to-income ratio, making it easier to qualify for a mortgage.

But Make Sure Not to Set Yourself Up for Financial Trouble Just to Make Homeownership Happen

We know, you must be eagerly waiting to step into your first home. But in your rush to make it happen, don’t fall into traps that could turn your homeownership dream into a nightmare. Here are some things you absolutely should not do just to afford a home –

1. Taking on High-Interest Debt for Down Payment

You might be tempted to take out a personal loan or use a line of credit to cover your down payment. But this can be a huge mistake. These types of loans come with high interest rates, making homeownership more expensive for you in the long run. 

You must also be careful when choosing from the down payment assistance programs. Some programs might require you to pay back the money with high interest or give up a big share of your home’s equity. Instead, you must look for programs that truly help you with your down payment without adding a financial burden. For instance, the Tonsto Down Payment Assistance Program offers up to 2% cash back with no interest or equity tied to it. That’s the kind of assistance you should get – one that doesn’t come with strings attached.

2. Draining Your Savings Completely

Putting every last dollar into your new home might not seem like a bad idea at the moment. But keep in mind that life happens. Your new home’s furnace may break down in the first winter or an unexpected medical ball may pop up right after you move into the home. You could end up in serious financial trouble if you have no emergency savings for such cases. This is why maintain at least three to six months’ worth of expenses in your savings fund. 

3. Not Calculating All the Costs of Homeownership

The down payment and mortgage aren’t the only costs you need to worry about. You will also need to budget for closing costs, insurance, utility bills, home maintenance and repairs. So, before buying the home, sit down and crunch all the numbers. Make sure you can afford every expense that comes with buying and owning a home. 

4. Holding Too Strong to Your Wishlist

Everyone has a dream home in mind. Maybe you want a house with a gourmet kitchen or in a more desirable part of the city. But if you hold too tightly to this wishlist of yours, you may miss out on great affordable housing opportunities. While you wait for the “perfect” home, other buyers may snatch up properties that could have been a great fit for you. 

Your Dream Home is Closer Than You Think- Don’t Give Up!

It’s easy to feel like the odds are stacked against you in today’s housing market. But don’t let that fear and uncertainty hold you back from your homeownership dream. Use the financial hacks and avoid the mistakes we covered above and you can turn your homeownership dream into reality. 

Your dream house is out there waiting for you – you just have to go get it!