How To Save For A House

Saving for a house comes down to three core moves: know your target, automate your savings, and pick the right accounts so your money actually grows while you wait.

Start With a Clear Target

First, figure out roughly how much you need:

• Down payment (e.g. 5–20% of the home price)

• Closing costs (legal fees, land transfer tax, inspections, moving, etc.)

• A bit of buffer for furniture and “surprise” expenses

Even a rough number (like “I need $40,000–$60,000”) makes it easier to build a realistic plan.

KOHO High Interest Savings

While you’re building that down payment, you don’t want your money just sitting in a low- or no-interest account.

With KOHO High Interest Savings, you can:

• Earn a high interest rate on your house fund

• Keep your money flexible and accessible in the app

• Set up automatic transfers so you’re saving consistently, not just when you remember

Build a Simple Monthly Savings Plan

Once you know your target, reverse-engineer it:

1. Decide when you’d like to buy (for example, in 3–5 years).

2. Divide your total savings goal by the number of months until then.

3. That number is your monthly savings target.

Example:
If you want $36,000 in 3 years → that’s 36 months → $1,000 per month.

From there:

• Set up an automatic transfer to your KOHO High Interest Savings right after payday.

• Treat it like a non-negotiable bill to your future self.

Trim and Redirect “House Money”

To hit a big goal faster, look for areas to free up cash and move it into savings:

• Reduce a few recurring subscriptions or plans.

• Cap dining out or delivery and move the difference to your house fund.

• Direct tax refunds, bonuses, or extra income straight into savings instead of spending it.

Every chunk you redirect shrinks your timeline or boosts your down payment.

Use the Right Mix of Accounts

For a home down payment, many Canadians use a mix of:

• A high interest savings account for flexible, short-term money

• Registered accounts (like FHSA/TFSA/RRSP) where appropriate for tax advantages

Your exact mix depends on your timeline, risk comfort, and eligibility, but the idea is the same:
keep your house money growing, not just sitting still.

Keep Checking In on Your Progress

Every few months:

• Check your savings balance vs. your target

• Adjust your monthly contribution if your income or expenses change

• Revisit your timeline if the market or your life situation shifts

The goal isn’t perfection—it’s steady progress toward getting the keys.