It’s not an easy time to get into the housing market. Global News recently released an Ipsos survey that showed 63% of Canadians who don’t own a home have given up on ever owning one. If that’s you, there’s help at hand.

Get Your Finances in Order

To qualify for a CMHC-insured mortgage, remember that you can’t use borrowed funds for your down payment (gifts are fine if you don’t have to pay them back).

You should also keep in mind that your entire monthly debt load should not be more than 44% of your gross income. With the rise in interest rates, there’s never been a better time to put your finances in order.

Here’s three things first-time home buyers can do to increase purchasing power:

Increase your savings

The tightened Canada Mortgage and Housing Corporation rules mean you can’t use unsecured personal loans, unsecured lines of credit and credit cards to save a down payment.  Why not build your savings through a One Grand Plan savings account? There’s never been a better time to learn how to start and stick to your budget.

Make a debt repayment plan

Figure out what you owe and what the interest rate is for each debt. Consider paying down your highest interest debt first, then paying down the next highest in turn, until you have paid off your debts. Remember that you will need to maintain minimum payments on all your debts while focusing on eliminating higher interest debts. Here’s some great tips on how to repay credit card debt.

Improve your credit score

The higher your credit score, the more likely a creditor is to lend you money. Find out how to raise your score in The Score of a Lifetime.

You can also check out the federal government’s Home Buyers’ Plan and the proposed First Home Savings Account (FHSA). The FHSA is expected to be available in 2023 and will combine the benefits of a Tax-Free Savings Account and a Registered Retirement Savings Plan.

“If you would like to discuss any of these programs in further detail or have any questions, please feel free to reach out to me. The most rewarding part of my job is helping people like you get into a home of their own,” says Bev Murdock, Mobile Mortgage Manager with Coastal Community. “You may be closer than you think!”