18 Aug 2022

How much money should I have before I buy a house?

Money and House Repossession

So, how much money should you have before buying a house? This is a very personal question and not everyone will have the same response. If you are getting a mortgage loan to pay for the home as you repay the debt to own the home after the term is complete, you will need to make a list of the fees and additional costs.

First, how much can you repay? What are your minimum and maximum? Without a set budget, it is harder to pinpoint how much you should save before buying a home. The deposit is the biggest lump sum that takes more people decades to save. 

Even during the start of the application process, you owe something. You will need to pay a non-refundable application fee to process your paperwork. The fee is small, usually less than $50. As you continue, you will need to pay for additional copies and mortgage insurance if you do not have a high enough deposit.

You should save at least 5-10% of the borrowing amount for the deposit. Keep another $5-10k in the bank for emergency savings as anything can happen during moving.

Money for a House Conclusion

Mortgage House experts likely have the answers you need. If you need a free estimate, call our lenders and they will happily assist you in finding an approximate amount you should save before buying a home.

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