Buying Guides
How Much Deposit Do You Actually Need to Buy a Home?
By LashkariProperties Team · July 30, 2026 · 6 min read
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
Tools mentioned in this article
Down Payment Calculator
Work out your down payment, loan amount, and how the deposit percentage affects your loan.
Mortgage Insurance (PMI) Calculator
Find out whether mortgage insurance applies, what it costs monthly, and how to avoid it.
Down Payment Savings Calculator
Find out how long it takes to save your target down payment with monthly contributions.
Closing Cost Calculator
Estimate the closing costs and total cash needed to complete a property purchase.
Related reading
- How Much House Can I Afford? A Practical Numbers Framework
Calculate a sustainable home-buying budget using income, debts, rates, down payment, total housing costs and realistic stress tests.
- Are Extra Mortgage Payments Worth It? Interest Savings Math
Are extra mortgage payments worth it? See the interest-savings math behind biweekly, extra-monthly and lump-sum prepayments, plus when investing wins instead — with worked examples for US, UK, Canada, Australia and UAE b
- Closing Costs Explained: What Home Buyers Actually Pay
Closing costs surprise most first-time buyers. Learn exactly which fees you pay at closing, who covers what, how to estimate cash to close, and how to compare offers across the US, UK, Canada, Australia and UAE.