How to Save for a Down Payment

Saving for a down payment can feel huge, but it’s really just a big goal broken into monthly chunks.

Once you know your target and timeline, the rest is about systems and habits, not willpower.

KOHO Everything as Your Down Payment Savings

If you’re serious about saving, it helps to keep your down payment money in its own high-earning, low-friction bucket.

With the KOHO Everything plan, you get:

• Grow your savings with 3.5% interest, one of the highest rates in Canada

• Earn a 2% cash back rate on groceries, eating, drinking, and transportation and 0.5% cash back on everything else

• There are no foreign exchange fees, so you save on international purchases and travel

• Unlimited transactions and free e-transfers

• No minimum balance required, ever

1. Pick a Realistic Target

Start with a rough number instead of “I need a lot of money”:

• Choose a price range that fits your income

• Apply the down payment rules (5–20% depending on price)

• Add a buffer for closing costs (legal fees, land transfer tax, inspections, moving)

Now you have a real target, not a guess.

2. Turn the Target Into a Monthly Amount

Take your total goal and divide it by your timeline:

• Example: Need $40,000 in 5 years → about $667 per month

If that number feels impossible, you either:

• Extend the timeline,

• Lower the home price target, or

• Find extra ways to create room in your budget.

3. Automate Your Savings

Automation is your best friend here:

• Set up automatic transfers from each paycheque

• Treat it like a non-negotiable bill you pay your future self

• Try increasing it slightly every time your income goes up

4. Use Cash Back and Found Money

Boost your progress with “extra” sources:

• Direct cash back into your down payment goal

• Throw in tax refunds, bonuses, or side-hustle income instead of lifestyle upgrades

• When you cancel a subscription, move that same amount into savings each month

These small wins add up surprisingly fast over a few years.

5. Trim the Right Expenses (Not All Joy)

You don’t have to cut everything—just be intentional:

• Identify 2–3 big levers (e.g., dining out, delivery, shopping, subscriptions)

• Cap or reduce those

• Keep a bit of room for fun so you don’t burn out and quit

The goal is sustainable progress, not a miserable crash diet for your money.

6. Protect Your Progress

As your down payment grows, protect it:

• Keep it separate from day-to-day spending

• Maintain a small emergency fund so you don’t dip into house savings for every surprise

• Avoid taking on new high-interest debt that will slow you down

Your future mortgage lender will also like seeing that you can save consistently and manage credit well.