How much do I need to save?

How much do I need to save? 

For starters, most lenders ask for a 10% deposit. First time buyers can get a mortgage with less, but saving a larger amount could boost your chances of being accepted for a mortgage, or help you access better deals.

Having a larger deposit means you’ll be able to apply for mortgages with a lower LTV (loan to value). These mortgages typically have lower interest rates.    

So the bigger your deposit, the more likely it is that you'll be able to access mortgage deals with a lower interest rate. 

Saving a little longer to get a larger deposit could help you pay less towards the total value of your mortgage over time, compared to what you'd pay on a mortgage deal with a higher interest rate. 

How much should you save? 

The answer depends on what's important to you. You may want to buy your first home as quickly as possible. Or perhaps you're willing to wait and save a little longer to access better mortgage deals. 

You'll also have to budget for other costs. You can expect to pay things like legal fees, taxes, and surveys.  

This can all feel a little overwhelming. That’s why we created the First Home Steps app. Use it to break down all the additional costs and get your personal savings plan.