First Time Home Buyers

There are many exciting and equally terrifying events that people experience throughout their lifetime…learning to drive, your first job interview, and certainly buying your first home.

Not as easy as TV makes it look

T.V often has a way of distorting reality – adding in some spice and drama, but always working out in the end.  I wish I could say that buying your first home is easy!  I don’t want to seem like a pessimist but there are a few important pieces to this puzzle.  It’s certainly not impossible – it just involves some patience, time, and most importantly – some self control.  Unfortunately for us, life doesn’t come in beautifully manicured 30 minute segments.

The down payment recipe

Like anything good, there is a basic recipe for success with getting your down payment together for your first home.  In fact, it’s the same basic recipe for any successful investment.

1) Savings – the amount you can pay yourself first every month and still have enough money left over for all other required expenses

2) Time – the length of time before you want to fulfill your goal

3) Rate of return – the gain/profit you believe you can receive on your investments

Being realisticBuying Your First HomeBuying Your First Home

Money doesn’t grow on trees, as many Baby Boomers would believe.  You’re going to have to work and likely scrimp to get your funds together.  You’ll either need to save enough, or have enough time to reach your goal.  A $20,000 down payment will afford you a house up to approximately $400,000 – which in today’s market is likely average.  To get that $20,000 down payment, you would need to set aside about $300 every month at a 5% rate of return for 5 years.  If you want it quicker you’ll need to save more, because taking on more investment risk over a short time period is not a recommended idea.  You certainly don’t want the market crashing when you need your money most, so keep this short term investment safe.  As great of a story as Cryptocurrencies are right now – It’s not worth the risk with the money for your home!


You have to recognize that you are the one that is responsible for your actions.  You need commit to setting the money aside, now, and plan properly – whether you can do this by yourself or you seek out additional professional help through a Financial Advisor.  If you’ve dreamed of the idea of buying your own home for awhile then there’s no better time to start your plan than now.  With time and savings being the two most important ingredients for your down payment soup, make sure you use each one to your advantage. You will be moving into your first home in no time!

Blog contributor Jordan Gillespie is a Financial Advisor and Insurance Broker at Davlyn Financial Services, a family run company, in Cambridge, Ontario.