Saving for a down payment is one of the least exciting and most difficult parts of the home buying process for a first-time home buyer. If you have never had more than a few thousand dollars in the bank, setting aside five figures or more as a down payment may seem impossible. But, saving for a down payment for a house is not as difficult as you may think.

Here are 5 ways to save a down payment for a house:

1. Prioritize

It is all about priorities when it comes to saving a down payment for a house. Are you the type of person who goes out to eat all the time, go on expensive vacations, and buy the latest stuff? Or are you the type of person who is willing to cut down on unnecessary expenses to save for a house?

So if saving for a down payment is one of your priorities, then it’s important to identify where you can cut back. The best way to find areas to cut back is to do a budget. This will help you put more money into your savings.

2. Pay off your debts

You cannot save money if you have outstanding debts. The first thing you need to do is to plan and dedicate yourself to paying off all your debts, commonly referred to as debt consolidation. Start by paying off your debt with the highest amount and interest rate. Then you should take the minimum payment from that debt and use it to help you pay off the next small debt with the highest interest rate.

Once you have paid these off, you can use the two minimum payments that you used to pay for those smaller debts to help you pay off your next debt faster. This will pretty much cause a snowball effect because the minimum payments you are freeing up will help you to make larger and larger payments against one debt at a time.

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3. Get rid of one car

Do you have a partner and do you have two cars? You should consider getting rid of one car. Getting rid of a car will help you save thousands of dollars because you will save on one car payment, gas, insurance, and maintenance every month.

You can move closer to where you work, consider taking the public transit, and even carpooling to work. However, if this does not work for you, you can park your car for a couple of months in the garage, then sell your car once you see that it is working for you.

4.  Save extra income from work

Let’s say you get a bonus, tax refunds, or even a raise. You should take that extra money and save it into a separate savings account. It might not seem much, but it’ll eventually add up.

5. Borrow from your Registered Retirement Savings Plan (RRSP)

If you already have some money invested into your RRSPs, this is a great way to come up with a down payment for your house. However, if you do not, this is a good option to save money for your RRSP because you can get a tax credit to help reduce your taxes. You should contact your financial advisor to see if this option is right for you.

6. Use a Tax Free Savings Account (TFSA)

Another good option to come up with a down payment for your house is using a TFSA account. The money you put into your TFSA will grow because you do not have to pay income tax on the money you earn. Again, you should contact your financial advisor to see if this option is right for you.

7. Look into the First-Time Home Buyers’ Plan (HBP)

You should look into the first-time Home Buyers’ Plan. This will make it easier for first-time home buyers to afford a home. The HBP is a program that allows you to withdraw up to $25,000 in a calendar year from your RRSPs to buy your home