What’s the Ideal Down Payment for a Mortgage in 2024?

advisergirl

Hi all,

I’ve been hearing a lot of conflicting advice about how much to put down on a home. Some say that 20% is the standard, but I’ve also read that many buyers, especially first-time homebuyers, are putting down much less.

With changing mortgage rates and home prices, what’s the ideal down payment for today’s market? Is it worth trying to hit that 20% mark, or are there other factors I should consider? If you put down less, did you face challenges with higher interest rates, mortgage insurance, or overall cost?

I’m curious to hear your thoughts and experiences on this! Thanks in advance for sharing

CliveOfIndia

It depends a lot on your personal finances, but to put it bluntly - "as much as possible".  The bigger deposit you can stump up, the less you'll have to borrow, so the less you'll pay in interest, it's as simple as that really.

Most mortgage lenders have different "levels", for want of a better word.  By which I mean, they'll generally offer you a better deal if you're able to put down a larger deposit.  Each lender will be different, some may offer a better rate if you can put down 20% than if you can only manage 15%, for example.

But, irrespective of the particular deals on offer, the less you can borrow then the less you'll pay.  And bearing in mind that a mortgage is usually for a significant sum of money over a very long period, even a small reduction in the monthly interest payments can make a big difference over the term of the loan.

silvercar

I’ll move this to the mortgage board.

Nearlyold

Agree with previous reply, as much as you can afford taking into account all the outgoings you may face re any refurb costs if applicable and over what timescale you want to complete them and your expected surplus income etc.