Contributing Author: Olivia Forgette

Over 50-percent of aspiring homeowners state that the down payment and closing costs associated with purchasing a home are a significant obstacle. Making the leap from renter to homeowner can feel out-of-reach, but it doesn’t have to be. We are here to give you some creative ways to save for a home down payment so your trusted agent and lender can help guide you to the closing table.

Some things to remember

 

1) Create a new stream of income

Our first creative way to save for a home down payment is to create a new stream of income for yourself. A side hustle. If you’re willing to put in a little extra work on weekends or evenings, a small extra job can help build your savings account. Some ideas for side gigs include:

2) Reduce your commute or car payment

If you commute alone in your car, you can save money with more creative options. Consider using public transport if available in your area. If that’s not an option, potentially carpool or bike to work. You can then relocate those savings on gas and car wear-and-tear to a savings account for your down payment.

If driving a car is your only feasible option, consider getting a more affordable car with a lower payment or no car payment at all. Often more affordable vehicles also come with more affordable car insurance premiums. Also, consider a hybrid vehicle that can save you a significant amount in gas prices.

 

3) Downsize

Another creative way you can save for a home down payment is to downsize your life. There are multiple ways to downsize to save money.

Consider trying out a capsule wardrobe. A capsule wardrobe is a collection of clothing and accessories that can mix-and-match to make several different outfits. This allows you to majorly declutter your clothing and simplify your style and space. It also subsequently allows you to save money on not purchasing an excess of clothing.

Another way to downsize your life to save money for a down payment is to purchase things second-hand. This is also an eco-friendly way to boost your savings account.

Our third tip to saving money by downsizing is to be mindful about not purchasing things you don’t actually need. Managing excessive spending on unnecessary things can really add up and increase your savings account so you can have the cash to purchase your dream home-sweet-home.

 

4) Cancel subscriptions

In 2025 it’s safe to say that most people are paying for multiple, if not dozens of subscriptions. Between various streaming services, ecommerce subscriptions, gym or club memberships, or other digital subscriptions; there are bound to be some that you simply aren’t using. In fact, according to a 2022 survey performed by Zillow, about 33-percent of buyers reported canceling streaming, cable, internet, and phone subscriptions to help boost their savings for a down payment.

 

5) Save extra cash flow

Although difficult for many, another great tactic to help save money for a home down payment is to intentionally save any extra cash flow that may come your way. Purposefully and mindfully save any bonus you might receive from work, an annual monthly increase in your salary, or your tax refund. Putting away this “extra” cash is a great way to start boosting your savings account toward a home down payment.

 

6) Look for down payment assistance programs

Ask your lender or look online for any down payment assistance programs you may qualify for. Down payment assistance programs are loans and grants designed to help buyers afford a new home.

The amount of assistance the programs may offer vary. Illinois’ Housing Development Authority, for example, provides up to $10,000 for eligible buyers down payment and closing costs. These programs can be a great tool to use when purchasing a home.

 

7) Request a raise or a gift

Our next creative way to save for a home down payment is to request a raise from your employer, or a gift from a friend or family member.

Some tips for requesting a raise include:

  • Research industry standards and pay rates in your area
  • Be confident when you request your pay increase
  • Quantify your accomplishments by tracking achievements or using figures to show the value you’ve added to the company
  • Choose the right time to make your request (i.e. during an annual review, or after you have had a successful project completed)
  • Practice what you’re going to say so you seem prepared
  • Aim high and be ready to negotiate
  • Mention your future career goals and how a raise aligns with those goals

Another route to get more money for your down payment is to request a gift from a friend or family member. If you turn to a loved one for capital for your down payment, make sure you document the money in a gift letter for your lender.

 

8) Cut down on travel

The final tip we have to help you save for a home down payment is to cut down your annual travel when you’re trying to save money. Although travel is fun and exciting, it does come at a cost.

Consider how much a week away can add up between lodging, transportation, and eating most meals out. If cutting out your well-deserved travel experience doesn’t seem like something you’re willing to give up, consider choosing a less extravagant destination. Something you can road trip to or making your trip shorter to save money.

Some additional tips on planning a vacation for less money include:

  • Travel during an off-season time
  • Book your flights and accommodation in advance for better rates
  • Consider using travel rewards or travel credit cards
  • Utilize public transportation at your destination (often more affordable than driving services or renting a vehicle)
  • Visit a grocery store at your destination to save on dining out costs
  • Choose free or low-cost activities while on your vacation
  • Pack light to save on baggage fees