Step 1: Choose a target
The deposit lenders require depends on the country, the lender, the type of loan and your circumstances. Check with lenders where you plan to buy. For planning, multiply the price you expect to pay by the percentage you aim to put down, then add the other upfront costs below.
| Deposit share | Amount |
|---|---|
| 5% | 15,000 |
| 10% | 30,000 |
| 20% | 60,000 |
These percentages are examples, not recommendations or lender requirements.
Step 2: Add the other upfront costs
- Closing or completion costs, such as legal fees, valuation and registration.
- Property taxes or stamp duty, where they apply.
- Moving costs and initial furniture or repairs.
- A cash cushion left over after buying, so the purchase does not empty your emergency fund.
Step 3: Turn the target into a monthly amount
| Target | In 3 years | In 5 years |
|---|---|---|
| 30,000 | 785.72 | 452.50 |
| 60,000 | 1,571.44 | 904.99 |
Without any interest, 60,000 in five years would need 1,000 a month. A 4% rate reduces that to 904.99. Starting with 10,000 already saved brings it down to 720.83.
Step 4: Decide where to keep it
Money needed in a few years is usually kept somewhere its value will not fall sharply just before you need it, such as an insured savings account or deposits. Investments can rise or fall in value over short periods. The 4% in these examples is an illustration, not a rate you can expect.
How it affects net worth
Saving the deposit raises your net worth. Buying the home converts much of that cash into home equity, and closing costs reduce net worth on the day you buy. The mortgage then appears as a debt alongside the home’s value. See does net worth include home equity.
Questions people ask
Is it better to wait and save a bigger deposit?
That depends on prices, interest rates, rent and your plans. A bigger deposit means a smaller loan, but waiting has costs too. We do not recommend one choice.
What if I cannot reach the target in time?
Change one of the three inputs: a longer timeframe, a lower target or a higher monthly amount. The monthly savings guide shows how each changes the result.
Sources
- Investor.gov (U.S. SEC), Savings goal calculator.
- Federal Reserve Board, Changes in U.S. Family Finances from 2022 to 2025: homeownership and housing wealth.
Educational information only. Deposit percentages and rates are examples, not lending criteria or advice.