How Much Deposit Do You Actually Need to Buy a Home?

Your deposit affects far more than whether your offer is accepted. It changes your loan size, your monthly payment, whether you pay mortgage insurance, and the rate you are offered.

Why 20% is the common benchmark

At a 20% deposit, your loan-to-value ratio reaches 80%, which is the threshold where most lenders stop requiring mortgage insurance. That single change can save a meaningful amount every month.

When a smaller deposit makes sense

Waiting years to reach 20% while prices and rents rise is not automatically the better choice. In a rising market, buying earlier with mortgage insurance can work out ahead.

• Calculate the mortgage insurance cost of a smaller deposit
• Compare it against the cost of waiting and continuing to rent
• Do not forget closing costs on top of the deposit