A larger down payment means a smaller mortgage, lower payments and often a better rate. In many countries 20% avoids mortgage insurance; first-time buyer schemes may allow 5–10%.
Monthly saving = (D − S × (1 + r)n) × r ÷ ((1 + r)n − 1)
D — down payment
S — already saved
r — monthly interest rate
n — months until you buy
Remember buying costs on top of the down payment — taxes, legal and lender fees — which often add 2–5% of the price.
Common questions
How much down payment do I need?
It depends on the country and lender. 20% is the classic target; many lenders accept less, but usually at a higher rate or with mortgage insurance.
Where should I keep my down payment savings?
Somewhere safe and easy to reach, such as a savings account or short fixed-term deposit. Investments that can fall in value are risky for money you need within a few years.