How big a deposit do you need for a home?
Is 5% enough, or do you really need 20%?
The simple version
In many countries you can buy with 3–10% down, but a bigger deposit usually gets you a lower rate and can avoid extra costs like mortgage insurance. How much lenders offer depends on your income, debts and local rules.
Deposit needed
$25,000
Mortgage needed
$225,000
That's more than the ~$202,500 (4.5× income) most lenders offer. A bigger deposit or cheaper home closes the gap.
Don't forget
Budget for closing costs too: legal fees, inspections or surveys, lender fees, property taxes and moving. Some countries also charge a purchase tax, sometimes with discounts for first-time buyers.
Key takeaway
Every extra 5% of deposit can unlock a cheaper rate. Plan for fees on top.
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Last checked September 25, 2026 · Example figures; rules vary by country · General education, not financial advice