Saving for a down payment: What you need to sacrifice

Prospective homebuyers will often have to make some lifestyle changes in order to save enough funds for a down payment. But, how much do you really need to sacrifice? Ratehub.ca, a financial product comparison website, conducted a study to see how everyday luxuries impact Millennials’ savings.

The methodology:

The average cost of a home in Canada was $472,247 in August 2017, according to the Canadian Real Estate Association (CREA). Mortgage Broker CanWise Financial found that Canadian homebuyers put down an average down payment of 10 per cent. Using these figures, ratehub.ca calculated that Canadian homebuyers will need to save $47,225 for a down payment.

So, what do you have to give up?

Millennials love the finer things in life, but the costs of these luxuries add up. For example, a specialty beverage at Starbucks costs an average of $4; takeout meals cost approximately $15; Every Uber ride you take will amount to about $16.40; brunch costs approximately $25; and nights out will set you back $65.

Here is how long it would take you to save for a down payment if you were to redirect the funds you would normally spend on these luxuries.

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