How much to put down
Your down payment is the slice of the price you pay upfront, and the rest becomes your mortgage. The amount is simply the home price times the percentage you put down. It sounds trivial, but the figure drives everything downstream: a bigger deposit means a smaller loan, a lower monthly payment, and often a better interest rate.
Two examples
On a 300,000 home, a 20% down payment is 60,000, leaving a 240,000 loan. That is the classic target most buyers aim for.
Put down 10% on the same home and your deposit is only 30,000, but the loan jumps to 270,000. Easier to save for, harder to carry, and in many countries a deposit under 20% also triggers mortgage insurance, adding to the monthly cost.
Worth knowing
Twenty percent is a common goal because it often removes mortgage insurance and signals lower risk to lenders. Smaller deposits get you in the door sooner but usually cost more over the life of the loan. Remember closing costs sit on top of the deposit, so budget for them separately, then feed the loan amount into the mortgage calculator to see the real monthly payment.
Frequently asked questions
Is a bigger deposit always better?
It lowers the loan, payment and interest, but do not drain your emergency fund for it. Keep some cash aside for moving and repairs.
Why aim for 20%?
It often removes the need for mortgage insurance and can secure a better rate, though smaller down payments are available.
Does a bigger down payment help?
Yes. It reduces the loan, the monthly payment and total interest, and lowers lender risk.
What about closing costs?
Those are separate from the down payment. Budget for them on top of your deposit.