Down Payment Calculator

The down payment is the chunk of a home's price you pay up front, and it does more work than simply reducing the loan. It sets how large your mortgage is, whether you pay for mortgage insurance, the interest rate you are offered, and how much equity you start with. For that reason it is worth saving deliberately rather than drifting into whatever happens to be in the bank.

Twenty per cent is the benchmark most buyers aim for, because below it most lenders charge mortgage insurance — a premium that protects the lender, not you, until your equity grows. But twenty per cent is a target, not a requirement. Many people buy with far less, accepting the insurance cost in exchange for owning sooner and ending the rent treadmill.

The trade-off is real and runs in both directions. A larger down payment means a smaller loan, a smaller payment and a lower total interest bill. Waiting longer to save it, though, means more months of rent and more exposure to house-price rises that could outpace your savings. There is no universally right answer; it depends on your local market and how stable your income is.

This calculator takes a target percentage, works out the deposit, subtracts what you have saved, and divides the gap by your monthly saving rate to estimate the waiting time. It then shows the resulting mortgage payment, so you can see how a bigger or smaller deposit moves the monthly cost.

Two practical notes. Keep the money somewhere safe and separate as the date approaches; a market fall in the final year is not a risk worth taking. And remember that the deposit is not the only upfront cost — closing fees, taxes and moving expenses add thousands, so save a little beyond the target.

This is an estimate for planning only, not financial or lending advice.

This calculator returns estimates for general information only. It is not financial, investment, tax or legal advice, and it cannot replace guidance from a qualified professional who knows your circumstances. Figures such as loan payments, investment growth and retirement projections are simplified models based on the inputs and assumptions you provide, not guarantees of future results.