How to Save a $25,000 Down Payment in Less Than 3 Years

Want to buy a $500,000 home in Ontario?

You may not need 20% down.

For a $500,000 home, the minimum down payment in Canada can be 5%, which equals:

$25,000

Now here is the simple plan.

If a husband and wife each save:

$370 per month

Together, they save:

$740 per month

If they save this money in a TFSA and earn about 5% annual return, they could reach approximately $25,000 in about 32 months.

That is less than 3 years.

The Simple Down Payment Plan

Goal: Buy a $500,000 home
Down payment needed: $25,000

Here’s the simple savings plan:

👨 Husband saves: $370/month
👩 Wife saves: $370/month
💰 Total savings: $740/month
⏳ Estimated timeline: About 32 months

Small steps today. Big home dreams tomorrow.

Do Not Forget Closing Costs

The $25,000 is only the down payment.

You should also save extra money for closing costs like legal fees, land transfer tax, appraisal, home inspection, and moving costs.

A safer total savings goal may be closer to:

$32,500 to $35,000

That gives you more breathing room when you buy.

Final Thought

Many first-time home buyers wait too long because they think they need $100,000 saved.

For a $500,000 home, your starting target could be much lower.

If both partners save $370 per month, stay consistent, and use a smart TFSA savings plan, a $25,000 down paymentcould be possible in less than 3 years.

Thinking about buying your first home in Ontario?

Let’s run your numbers before you guess.

Garry Sidhu
Mortgage Broker
437-961-0004

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