Keeping your down payments safe and let them grow is highly essential, especially when you take some important decisions in your life like buying your own new house with lake view!
So, let’s discuss a few options that will help you plan your down payments strategically.
Buying a home of your choice, at your preferred place with the same environment as your desire, and all these things within the budget can be quite troublesome. It’s an emotional decision. It takes much time, effort, and money to search for industrial land for sale of your dreams. Therefore, it becomes highly important to save your down payments at a place where they are most secure and can grow easily.
Let’s explore some options that can be viable for keeping your down payments safe so that you can buy lakefront property for sale near me with great ease.
High-yield savings accounts
A high yield savings account is considered one of the viable options when it comes to saving your lakefront lots for sale down payments, it can serve you some good returns in the future.
Don’t mistakenly choose a traditional basic saving account because that may keep your payment safe but doesn’t guarantee any growth. So, a better option is that you keep your down payments in the high-yield savings account.
A high-yield savings account pays more interest ranging from 1.75 to 2 percent which is much better than the basic account where you hardly earn any returns.
Moreover, don’t miss to review the policies and different offers provided by different banks, verify their fees, and analyze the features of every account type thoroughly.
Certificates of deposit (CDs)
If you are someone who aspires to earn a good amount of return on your savings or investments and don’t wanna rely on small income chunks, then there can be nothing better than a certificate of deposit (CD).
You can earn higher interest rates on the CDs, it has a basic term of 3 months to 5 years, so if you want to save your money for a long term like saving for 5 years, you can better save your desired waterfront land for sale near me with great ease because you now have a good option to rely on.
Registered Retirement Savings Plan (RRSP)
Registered Retirement Savings Plan (RRSP) is one of the helpful schemes formulated by the Canadian government that can help first time home buyers or else to make arrangement for their dream home down payments. So, What basically is RRSP?
Well, the Canadian government initiated the RRSP Home Buyer’s Plan in 1992 which states that people who never owned a property or whose partner-owned Lakeview estates property in some other place of the world, can easily apply for an interest-free loan under this Home Buyer’s Plan.
Now, a person contributing money to their RRSP gets many advantages, they can invest their money in the Exchange Traded Fund( ETFs), stocks, and bonds, and the list is still long!.
As per the 2019 updates, the borrowing limit for a person is $35000 so it means that a couple can borrow a loan value equivalent to $70000 for making appropriate arrangements for their lakeside houses for sale near me down payment. And what is the most beneficial point is that while you borrow money under this scheme you get complete 15 years to pay back the loan amount and that too interest-free!
Guaranteed Investment Certificate (GIC)
Now, this certificate is quite similar to the savings account. A guaranteed investment certificate holds your money for a period of 1 to 5 years, and when the term gets over, you get your entire deposited amount along with the interest that depends upon the amount of the money saved. The average rate of return that you can earn on this type of investment is between 2 to 4 %. So find your lakefront condo for sale with indelible support and plan.
Money Market Fund
This market fund is much similar to a mutual fund. This involves investment in short term instruments like cash and cash equivalents that carry a short span of less than a year. So, you get very liquid money available for spending at very low risk. These funds also offer attractive interest rates that are prone to the least fluctuations as compared to the other funds. So, it can be considered a good option for keeping your down payment safe for your dream lakefront cottages for sale on lake Erie.
So, these are some of the options that you can choose from for keeping your home down payment safe and secured.