How to Save for a House Deposit

This guide is for first-time buyers who want to own a home but feel the deposit is out of reach. You will learn how to work out a realistic target including the costs people often forget, set a timeline, find more to save each month, choose where to keep the money, and check for schemes that may help where you live. General information, not professional advice.

Work Out How Much You Really Need

A deposit, also called a down payment, is the part of the property price you pay upfront. The rest is usually borrowed through a mortgage. Lenders typically express the deposit as a percentage of the price. A larger deposit generally gives you access to more mortgage products and often lower interest rates, while a smaller one may still be possible but can cost more over time or require extra insurance in some countries.

Minimum deposit levels, typical deposit sizes and mortgage rules vary by country, by lender and over time. Check current requirements with several lenders, a mortgage broker or your government's home-buying guidance before fixing your target.

The table is illustrative only; use prices from the areas you are realistically considering. Look at recent sale prices rather than asking prices where that data is published.

It is also worth thinking about the type of property, not just the price. A flat or apartment may carry ongoing service charges or association fees, while an older house may need more spent on repairs soon after you move in. Those future costs affect how much you can comfortably borrow and how large a buffer you will want, so factor them in when you choose the price range that sets your deposit target.

Do Not Forget the Extra Costs

The deposit is not the only money you need. Buying a home involves a range of one-off costs, and many first-time buyers are caught out by how quickly they add up. Which costs apply, and how large they are, depends heavily on your country and region.

• Property purchase taxes or transfer duties. Many places charge a tax on buying property, sometimes with reductions for first-time buyers.
• Legal or conveyancing fees. Payment to a solicitor, conveyancer, notary or attorney to handle the legal transfer.
• Survey or inspection. A check of the property's condition before you commit.
• Mortgage fees. Arrangement, valuation, broker or application fees.
• Moving costs. Removal services or van hire, plus time off work.
• Setting up the home. Basic furniture, appliances, repairs, and buildings insurance from the date you commit.
• A safety buffer. Money left over after you move for unexpected repairs.

To estimate these costs, use official calculators for any property taxes, ask two or three conveyancers or legal firms for written quotes, and check lender websites for typical mortgage fees. Removal firms will usually quote for free. Write each figure on the worksheet at the end of this guide and update them as you get closer to buying.