As a first-time buyer, you’ve got other things to consider, including:

• Rental costs. (Are they higher or lower than your potential ownership costs?)

• Alternative uses for your down payment money. (Can you get a better return by investing down payment funds elsewhere?)

• The size of your emergency fund. (Home ownership comes with a laundry list of unexpected expenses.)

• Your economic stability and future earning power.

There are several ways to piece together a bigger down payment. You can:

• Cut your spending. “If you are saving for a house you might be a little more aggressive than the average saver,” Mr. Porter says.

• Tap into the bank of mom and dad. Gifts from parents get a lot of young people started as home owners.

• Borrow from your RRSP under the Home Buyers’ Plan (HBP).

• Apply tax refunds and bonuses.

• Get rid of one car in a two-car household.

• Postpone a vacation for 18 months or more.

• Use municipal first-time home buyer grants when applicable.

content found at: http://www.theglobeandmail.com/globe-investor/personal-finance/mortgages/save-up-for-a-down-payment-the-young-adults-struggle/article4484367/