The amount to put down on a house varies depending on your financial situation, loan type, and local market conditions. Here are key points to consider:
- The median down payment for all homebuyers is about 18%, but first-time buyers typically put down less, around 8% to 13%
- While a 20% down payment is ideal because it helps avoid private mortgage insurance (PMI), reduces the loan amount, and lowers monthly payments, it is not mandatory
- Typical down payments range from 3% to 20% of the purchase price. Government-backed loans like VA and USDA may allow down payments as low as 0%, while conventional loans often require at least 3-5% down
- Smaller down payments (e.g., 3-10%) can be beneficial if you want to keep savings for emergencies or other expenses, but they may increase monthly payments and require PMI
- In Canada, the minimum down payment is generally 5% for homes priced up to $500,000, with higher percentages required for more expensive homes
Ultimately, how much you should put down depends on your financial readiness, loan eligibility, and market conditions. Consulting with a mortgage advisor or real estate agent can help tailor the down payment amount to your situation
