What You Need to Save Daily for a Down Payment anywhere in Canada in a 1000 Days

If you can reduce your spending and save $15.00 a day, you could save enough for a 5% down payment on the average home in all but three provinces in Canada, within a thousand days.
    In the long run, buying a house instead of renting a house generally works out better for most households.  That is why we want to show you how easy it can be to save up for your down payment and what spending habits could be holding you back from your home ownership dream goal.
    What we are going to do for this article is intentionally focus on small dollar amounts and show you that even minor life choices can add up into big savings over a short period of time.


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Credit Card Nerd Math

We went with a thousand days, because it is a relatively short period of time (less than three years) and more importantly because it makes the math simple.  Your daily savings would be your 5% down payment divided by $1000.  The median house in Canada sells for $389,000, which would require a $19,450 down payment ($389,000 x 5%), which can be achieved by saving $19.45 a day ($19,450.00 ÷ 1000 days).



What you need to save to buy a house in Canada

The daily and weekly savings rate is based on a 5% down payment on the average house at each province.

Province

Average House
($1000's)

Daily Savings

Weekly Savings

National
(Median)

$389

$19.45

$136.15

National
(Average)

$508

$25.40

$177.80

British Columbia

$744

$37.20

$260.40

Alberta

$393

$19.65

$137.55

Saskatchewan

$300

$15.00

$105.00

Manitoba

$279

$13.95

$97.65

Ontario

$541

$27.05

$189.35

Quebec

$276

$13.80

$96.60

New Brunswick

$166

$8.30

$58.10

Nova Scotia

$224

$11.20

$78.40

PEI

$177

$8.85

$61.85

Newfoundland

$255

$12.75

$89.25



How Cutting Daily Habits Will Help You Save for a Down Payment in Canada

A list of simple habits and monthly costs that you can cut and how much of your daily savings goal will be achieved based on your daily savings goal.  First figure out what your daily savings goal should be by checking how much you would need to buy a house in your province.  Then you can check to see what small changes you can make in order to reach your down payment goal.
    Below we have a chart with typical habits that some Canadians have and the percentage of the savings goal for different savings goals.  How we calculated the percentage was we took the daily cost and divided by your savings goal.  For example; the Lotto Max with the Extra is a $6 a week expense.  This works out to $6 ÷ 7 days ÷ $9 daily savings goal = 9.5% for the Canadian looking to save $9 a day.
    The $80 meal on the weekend with your spouse works the same way.  For example, $80 ÷ 7 days ÷ $25 daily savings goal = 45.7% for the Canadian looking to save $25 a day.
    The $5000 credit card balance will cost you ($5000 x 21.9% ÷ 365) $3 dollars a day.  If your daily savings goal is $12, then getting rid of the $3 daily interest cost would be $3 ÷ $12 = 25% or your daily savings goal.
    A $10 daily meal will also work against you.  For example, $10 ÷ $25 daily savings goal = 40% for the Canadian hoping to save $25 a day.

Habits

$9 a Day

$12 a Day

$15 a Day

$20 a Day

$25 a Day

$1000 Credit Card Balance

6.6%

5%

4%

3%

2.4%

Lotto Max with the Extra (w)

9.5%

7.1%

5.7%

4.3%

3.4%

Tim Hortons Coffee (d)

22.2%

16.7%

13.3%

10%

8%

$5000 Credit Card Balance

33.3%

25%

20%

15%

12%

Frappuccino (d)

49.4%

37.1%

29.7%

22.2%

17.8%

$40 Meal (w)

63.5%

47.6%

38.1%

28.6%

22.9%

$10 Meal (d)

100%+

83.3%

66.7%

50%

40%

$80 Meal (w)

100%+

95.2%

76.2%

57.1%

45.7%

Pack a day habit (d)

100%+

100%+

86.7%

65%

52%

W: Weekly habit, D: Daily habit


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A Wake Up Call

Saving for a down payment for a house in Canada can seem like an impossible task and it can be if you don't make some small life choices.  Depending on where you live you might be able to reach your minimum down payment goal with little to no life changes.
    The biggest changes that a typical Canadian can make, that wants to save for a down payment so they can buy their first house are; quitting smoking, eating out less, eliminating high interest debt and reducing their $5 to $10 regular spending habits.
    It can be hard to believe, but as little as one less restaurant meal a week with your spouse, quitting smoking or brown bagging your lunch can be the difference in renting or buying your first home within a 1000 days.