Yes, buying your first home with a 10% deposit is entirely possible, as many lenders offer mortgages with 10% or even lower (5%) down payments. While 20% is recommended to avoid extra fees, a 10% deposit is a common, viable option for first-time buyers with good credit and stable income, allowing for, at minimum, a 90% loan-to-value (LTV) ratio.
The minimum required deposit is 10%, but aim for 20% if possible. If you're borrowing more than 80%1 of the property value, you'll need to take out Lenders' Mortgage Insurance or Low Deposit Premium. There are some other upfront costs outside the deposit, including legal fees, stamp duty, moving costs and insurances.
Key Takeaways. Putting down at least 20% on a house is the wisest move—it keeps you from paying private mortgage insurance (PMI) and saves you thousands in interest over time. If you're a first-time home buyer, a 5–10% down payment is okay—but be ready for a higher monthly payment with PMI tacked on.
Many banks offer 10% and 15% deposit home loans, but the interest rates are usually higher than those offered to 20%+ deposit borrowers.
4 ways to buy a home with a lower down payment
Owning a home also makes it difficult to pick up and move on a whim. It may take months to sell your house. You must have enough resources to afford a down payment and closing costs, which typically average 4½ to 5½ percent of the purchase price of the home. As a homeowner, you will pay property taxes.
What is the minimum deposit for a mortgage? The minimum deposit you need for a Nationwide mortgage is 5% of the property price, which would be a 95% mortgage.
The 3-7-3 Rule in mortgages isn't a loan type but a federal timeline from the TILA-RESPA Integrated Disclosure (TRID) rule, ensuring borrower protection by mandating disclosures within 3 business days of application, a 7-business-day wait between the initial Loan Estimate and closing, and another 3-day wait if significant changes (like APR) occur, giving borrowers time to review costs before committing to a loan.
A deposit is usually paid to the seller when contracts are exchanged, which your conveyancer will transfer to the seller's conveyancer on the exchange date. This is usually around 10% of the total purchase price of the property, but there may be scope to negotiate this.
The simple rule with mortgages is the more you save upfront, the better your mortgage deal could be. A larger mortgage deposit reduces your loan-to-value (LTV). This can unlock lower mortgage rates, lower your monthly repayments and give you more equity in your home.
Eligibility for a ₹10 lakh Home Loan:
Professionals and self-employed individuals falling within the income-tax bracket are eligible for a Home Loan of ₹10 lakh, with an age limit of 21 years at the time of application and 65 years at loan maturity.
Save 20% of your gross income monthly for a quicker down payment and better loan rates. Example: Earning $100,000/year, save $20,000 in 12 months, $30,000 in 18 months.
You and the seller each have a copy of the final contract which you must sign. These signed contracts are then exchanged. At exchange of contracts both you and the seller are legally bound by the contract and the sale of the house has to go ahead. If you drop out, you are likely to lose your deposit.
VA loans. If you're a military service member, veteran or surviving spouse, you might qualify for a VA loan guaranteed by the U.S. Department of Veterans Affairs (VA). Unlike a conventional loan, VA loans don't typically require a down payment, and they don't charge mortgage insurance.
The "3-3-3 rule" in real estate isn't a single guideline but refers to different strategies: for buyers, it's about financial readiness (3 months savings, 3 months reserves, 3 property comparisons) or a financial affordability check (30% income, 30% down, 3x income); for agents, it's a marketing habit (call 3, note 3, share 3) or prospecting (talking to everyone within 3 feet). There's also a developer rule (1/3 land, 1/3 build, 1/3 profit), though it's considered outdated by some.
While there's no “right” age, there are trade-offs between buying when you're a young adult and waiting until you're older. Why buy a home earlier in life? If you can swing it, homeownership in your twenties or thirties brings many advantages.
Home Loan EMI Per Lakh For 40 lakh
5-year tenure: ₹2,075 per Lakh. 10-year tenure: ₹1,271 per Lakh. 20-year tenure: ₹900 per Lakh. 30-year tenure: ₹773 per Lakh.
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