Saving for a Downpayment? Some Advice Along the Way!

Katherine Martin • August 18, 2016

If you are looking to purchase a property in the next while, you probably already know that you need at least 5% of the purchase price as a downpayment. Saving a bigger downpayment, let’s say 10%, certainly increases your chances of securing financing. While having a 20% downpayment allows you to avoid paying CMHC mortgage insurance (most of the time), which can save you a lot of money! 

The problem with saving money is that it’s hard! Really hard. Most of us spend what we make on life expenses. Finding extra money at the end of the month to put away for something like a downpayment on a house can seem like an impossible task. Unfortunately, there is no magic formula to simply make an extra $40k in 3 weeks, saving money is a process, and it takes time! 

Below are three articles that can help you with the how of saving money!

Now, if you are considering purchasing a property, but don’t already have a plan in place, please contact me directly. I would be more than happy to get you started. 

7 Simple Ways To Start Saving Money Now

Money growing 

Written by Prajakta Dhopade. Published on Money Sense November 9th 2015. 

Most people realize that saving their hard-earned money is essential to ensuring a comfortable future. It’s just the actual execution of a savings plan that eludes them. But trying to save without a concrete plan can leave you feeling directionless and lost, both of which seriously hinder progress. On the other hand, implementing a savings plan that is too stringent could lead to feelings of discouragement, which may drive you to abandon your path.

So what are the best ways to create a savings plan and stick to it?

How To Avoid The Pressure To Spend

Written by Randy Cass. Published on Nest Wealth May 11th 2016.

We all like spending money on the things we enjoy, whether it’s dinners at nice restaurants, clothes, cars, or vacations, because when we buy we receive instant gratification. However, problems begin to surface when we overspend on wants instead of needs, or, when we spend money we don’t actually have. 

Much like all behaviours, our buying habits reflect our backgrounds, experiences and psychological make up. And while shopping preferences and disposable incomes may differ, the logic behind our spending habits is pretty well the same – spending money allows us to feel in control. 

The Magic of Wanting: An unexpected perk of living with less

Written  by Chris Enns. Published on Rags to Reasonable Feb 22nd, 2015. 

You remember how amazing Christmas or your birthday was when you were a kid?

The anticipation. The sleepless night. The setting out of the cookies… the eating of ice cream for breakfast (I’ll let you decide which tradition goes with which event). And the getting of sweet sweet stuff.

You’d made your list, or dropped super subtle hints about the exact lego set that you definitely wanted.

Then you wait, and the waiting is intolerable. But it finally comes. And there’s more anticipation. Will it be there? Will Santa come through? (Yes. He came every year on my birthday, too. We have a special bond.)

Now, as a legally defined grown-up, it’s pretty different.

Katherine Martin


Origin Mortgages

Phone: 1-604-454-0843
Email: kmartin@planmymortgage.ca
Fax: 1-604-454-0842


RECENT POSTS

How to Get a Mortgage for a Second Property

By Katherine Martin • April 1, 2026
Thinking About Buying a Second Property? Here’s What to Know Buying a second property is an exciting milestone—but it’s also a big financial decision that deserves thoughtful planning. Whether you're dreaming of a vacation retreat, building a rental portfolio, or looking to support a family member with a place to live, there are plenty of reasons to consider a second home. But before you jump in, it's important to understand the strategy and steps involved. Start with “Why” The best place to begin? Clarify your motivation. Ask yourself: Why do I want to buy a second property? What role will it play in my life or finances? How does this fit into my long-term goals? Whether your focus is lifestyle, income, or legacy planning, knowing your “why” will help you make smarter decisions from the start. Talk to a Mortgage Expert Early Once you’ve nailed down your goals, the next step is to sit down with an independent mortgage professional. Why? Because buying a second property isn't quite the same as buying your first. Even if you’ve qualified before, financing a second home has unique considerations—especially when it comes to down payments, debt ratios, and how lenders assess risk. How Much Do You Need for a Down Payment? Here’s where the purpose of the property really matters: Owner-occupied or family use: You may qualify with as little as 5–10% down, depending on the property and lender. Income property: Expect to put down 20–35%, especially for short-term rentals or if it won’t be occupied by you or a family member. Your down payment amount can be one of the biggest hurdles—but with strategic planning, it’s often manageable. Ways to Fund the Down Payment If you don’t have the full amount in cash, you might be able to tap into your current home’s equity to help fund the purchase. Here are a few ways to do that: ✅ Refinance your existing mortgage to access additional funds ✅ Secure a second mortgage behind your current one ✅ Open a HELOC (Home Equity Line of Credit) ✅ Use a reverse mortgage (in certain age-qualified scenarios) ✅ Take out a new mortgage if your current home is mortgage-free These options depend on your income, credit, home value, and overall financial picture—another reason why having a pro in your corner matters. Second Property Strategy: It’s More Than Just Numbers This purchase should be part of a bigger financial plan—one that balances risk and reward. It’s about: Assessing your full financial health Maximizing your existing assets Minimizing your cost of borrowing Aligning your purchase with your long-term goals Ready to Take the Next Step? There’s no one-size-fits-all answer when it comes to buying a second property. That’s why it helps to talk things through with someone who understands both the big picture and the small details. If you’re ready to explore your options and build a plan to make that second property dream a reality, let’s connect. I’d love to help you take the next step with confidence.

Deposit vs. Down Payment: Key Differences for Homebuyers

By Katherine Martin • March 25, 2026
When you’re buying a home, two terms often cause confusion: deposit and down payment . While they’re related, they serve very different purposes in the homebuying process. Here’s what you need to know. What Is a Deposit? A deposit is the money you provide when you make an offer on a property. Think of it as a show of good faith that proves you’re serious about purchasing. How it works : Typically, you provide a certified cheque or bank draft that your real estate brokerage holds in trust. If your offer is accepted, the deposit remains in trust until the deal moves forward. If negotiations fall through, the deposit is refunded. Connection to your down payment : Once the sale is finalized, your deposit becomes part of your total down payment. Why it matters : The amount is negotiable, but a larger deposit can make your offer more attractive in a competitive market. Keep in mind, however, that if you back out after conditions are removed, you risk losing your deposit. What Is a Down Payment? Your down payment is the amount you contribute toward the purchase price of your home when securing a mortgage. Minimum requirement : In Canada, the minimum down payment is 5% of the home’s purchase price. Anything less than 20% requires mortgage default insurance. Sources : Down payments can come from your savings, the sale of another property, RRSP withdrawals (through the Home Buyers’ Plan), a gift from family, or even borrowed funds. Example: How They Work Together Imagine you’re buying a $400,000 home with a 10% down payment ($40,000). When you make your offer, you provide a $10,000 deposit . Once conditions are met, that deposit is transferred to your lawyer’s trust account. At closing, you add the remaining $30,000 to complete your full down payment. The lender provides the rest—$360,000—through your mortgage. The Bottom Line Your deposit shows commitment and secures your offer, while your down payment is what makes the mortgage possible. Together, they work hand in hand to get you into your new home. 📞 If you’d like clarity on deposits, down payments, or any other part of the mortgage process, let’s connect. I’d be happy to walk you through it step by step.
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