APARTMENT RENTAL NEWS

How to Save for a Down Payment While Renting

Saving for a down payment while paying rent might feel like an impossible challenge — but it doesn’t have to be. With strategic planning, automated savings, and supportive programs like Drewlo’s Rent. Save. Own. Renters can make steady progress toward owning their first home.

This guide will show you, step-by-step, how to save for a down payment while renting and how Drewlo’s innovative program can give you valuable credit toward your future home purchase.

The Down Payment Dilemma Renters Face

Why It’s Hard to Save While Renting

For many renters, rent and living expenses take up a large portion of their monthly income. It can feel like you’re working hard to stay in place, not move forward. Rising rents, groceries, and interest rates add extra pressure.

Typical Down Payment Requirements

In Canada, down payments typically start at 5% of the purchase price for homes under $500,000. That’s $25,000 on a $500,000 property — not including closing costs and moving expenses.

Why It’s Still Possible

Saving doesn’t mean giving up your lifestyle; it means creating a smarter plan for the money you already earn. By breaking your goal into smaller steps and using available programs, you can shorten your path to homeownership.

Setting a Realistic Homeownership Goal

Start with a clear picture of your target home price, desired location, and how much you’ll need to save. For instance, if your goal is a $550,000 home with a 10% down payment, your target is $55,000.

Break that down by timeline — saving $1,000/month for 55 months gets you there. When programs like Rent. Save. Own can reduce your total purchase price; that timeline can be shortened further.

Smart Budgeting Strategies While Renting

1. List every expense — rent, groceries, transportation, and entertainment.

2. Prioritize savings before non-essentials.

3. Use budgeting apps like Mint or YNAB to track progress.

Set aside an amount you can automatically save each month and adjust quarterly as your income or expenses shift.

Automate Your Savings and Stay Consistent

Pay Yourself First

Treat your savings like a fixed bill — transfer funds to your savings account the day you’re paid.

Automate Transfers

Automatic transfers ensure consistency. You can also use “round-up” features on banking apps to send spare change into your savings account.

Choose the Right Account

Use a High-Interest Savings Account (HISA) or TFSA to earn interest tax-free while keeping your down-payment fund separate from day-to-day spending.

Reducing Expenses Without Reducing Joy

1. Cut back on non-essentials: Limit eating out, subscriptions, or luxury shopping.

2. Negotiate bills: Contact your phone or internet provider for better rates.

3. Consider roommates or smaller spaces: Downsizing or sharing a rental can dramatically increase your monthly savings potential.

Boosting Income to Accelerate Savings

Earning more often helps faster than cutting expenses alone.

1. Start a side hustle: Freelance, tutor, or drive part-time.

2. Upskill: Take affordable online courses to earn a raise or promotion.

3. Sell unused items: Declutter and use the proceeds to build your savings.

Every additional dollar earned shortens your savings journey.

Turning Rent Time Into an Advantage

Your rent doesn’t have to be “wasted money.” Every month of on-time payments strengthens your credit history, proving to lenders you’re responsible — a crucial step in qualifying for a mortgage.

Even better, renters with Drewlo Holdings have access to a program that rewards them for being loyal tenants — the Rent. Save. Own. Program.

The Rent. Save. Own. Program by Drewlo Holdings Explained

How the Program Works

Drewlo Holdings, in partnership with The Ironstone Building Company, offers a unique program called Rent. Save. Own.

Each month you rent with Drewlo, you earn $400 in credit, up to a maximum of $15,000. This credit is applied directly to the total purchase price of a new Ironstone home when you’re ready to buy.

👉 Learn more at ironstonebuilt.com/rent-save-own or drewloholdings.com/save.

Eligibility

1. Must be a current Drewlo Holdings leaseholder.

2. Credits are earned monthly at $400 per month, capped at $15,000.

3. The credit applies only to the purchase price of a new Ironstone home (not resale or other builders).

4. Credit is valid only during your tenancy — once you move out, it expires.

5. The credit is non-transferable and applies only to the leaseholder.

Key Benefits

1. Helps reduce the overall cost of your new home.

2. Rewards long-term renters with tangible savings.

3. Offers a structured path from renting to owning without changing landlords.

Important Note

The Rent. Save. Own. Credit cannot be used as part of the down payment required by your lender. You’ll still need to provide your own down payment, but the credit lowers your total purchase price, reducing your mortgage amount.

Integrating Rent. Save. Own. Into Your Savings Plan

Here’s how to include the program in your long-term financial strategy:

1. Plan your savings goal assuming you’ll receive a credit that reduces your purchase price.

2. Example: If your target home costs $550,000 and you earn the full $15,000 credit, your new purchase price is $535,000.

3. You’d still need to save your down payment (5% = $26,750), but the credit helps lower your mortgage size and long-term interest costs.

This strategic approach makes the path from renting to owning smoother and faster.

Government and Bank Incentives for First-Time Buyers

In addition to Drewlo’s program, explore other supports:

1. First-Time Home Buyer Incentive (Canada): Shared equity program that helps reduce mortgage payments.

2. Home Buyers’ Plan (HBP): Withdraw up to $35,000 from your RRSP tax-free.

3. Tax-Free First Home Savings Account (FHSA): A new savings tool combining the benefits of RRSPs and TFSAs.

These can complement your savings and Drewlo’s credit for an even stronger buying position.

Avoiding Common Pitfalls

1. Thinking credits replace savings: You still need your full down payment.

2. Not accounting for extra costs: Include closing fees, inspections, and moving expenses.

3. Leaving before you buy: Remember, the Rent. Save. Own. Credit expires when tenancy ends, so plan accordingly.

Case Study: How Rent. Save. Own. Helps a Drewlo Renter

Let’s look at a practical example:

Renter: Alex rents with Drewlo for 36 months.

Program Credits: 36 × $400 = $14,400 (applied to the purchase price).

Savings Goal: $22,000 in personal down payment funds.

Target Home: New Ironstone home at $550,000.

When Alex buys, Ironstone applies the $14,400 credit, reducing the total price to $535,600.

Alex still provides the down payment, but benefits from a lower mortgage and total cost — a substantial advantage built just by being a loyal renter.

FAQs

Q1: Can the Rent. Save. Own. credit be used as my down payment?

No. The credit is not applied toward the down payment. It’s a purchase-price credit deducted from the total cost of your new Ironstone home.

Q2: Can I use the program for resale homes or other builders?

No. It’s valid only for new Ironstone homes through The Ironstone Building Company.

Q3: How much can I earn through the program?

You earn $400 per month up to a maximum of $15,000 in credit.

Q4: What happens if I move out before buying?

The credit is valid only until the end of your tenancy. Once you move out, the credit expires and can’t be used.

Q5: Who can use the credit if multiple people are on the lease?

Only the leaseholder — the person named on the rental agreement — can apply the credit.

Q6: Can I combine this program with other homebuyer incentives?

Yes! You can still use government programs like the HBP, FHSA, or First-Time Home Buyer Incentive alongside Drewlo’s Rent. Save. Own.

Conclusion

Saving for a down payment while renting isn’t easy, but it’s absolutely possible with structure, consistency, and the right resources.

Programs like Rent. Save. Own. by Drewlo Holdings rewards loyal renters by providing up to $15,000 in credit toward the purchase price of a new Ironstone home — turning your time as a renter into a direct step toward homeownership.

Start your journey today:

✅ Build your savings plan.

✅ Stay consistent with your budget.

✅ Explore drewloholdings.com/save to see how your rent can help you own your dream