Where is your Comfort Zone?

Making The Right Deposit

On most home purchases the required deposit is ten percent.  If you make a larger deposit, your mortgage will be smaller and your monthly payments may be reduced. We advise our clients to make as big a down payment as they can while maintaining some savings and investments in other places. Having all your assets tied up in your house leaves you with nothing for other purchases or emergencies.

To determine the deposit range that is right for you, calculate your net worth, (which is the surplus left over after you subtract all your liabilities from your assets). We would suggest that you place no more than 75 percent of that surplus as your deposit.