What would you consider a decent deposit for a house?

daddymac90

45k deposit for 220k house decent??or would I need more

Just wondering what the average deposit knocks of the agreed price..

Anyone ever buy theres cash no mortgage??

jameshayes

what a strange post.

A bank normally sets the maximum loan to value, ie. 92% can be supplied by the bank, the remaining 8% by the buyer, so therefore 18K would be the required deposit, any more is up to the buyer to use as he wishes

L1011

Higher deposit will not get a lower price as the vendor still only gets the entire lot at the end.

daddymac90

MYOB wrote: »

Higher deposit will not get a lower price as the vendor still only gets the entire lot at the end.

I know that but would that 45k to 220k be considered a decent deposit or should i try save more

listermint

daddymac90 wrote: »

I know that but would that 45k to 220k be considered a decent deposit or should i try save more

yes it would. depending on circumstance of application

djimi

daddymac90 wrote: »

I know that but would that 45k to 220k be considered a decent deposit or should i try save more

The bigger the deposit the smaller the mortgage. If you are in no rush to buy then keep on saving. Depending on where you are looking to buy, there is a chance that the houses will be cheaper again this time next year, so bigger deposit + smaller house price = smaller mortgage.

daddymac90

plan to buy in 3 years just hope they don't start going back up by then

ionapaul

Also, you can avail of mortgages with a better rate of interest by providing a bigger deposit, as you are reducing the risk to the bank and they can pass along this in the form of lower interest rates.

For example, take a look at AIBs rates:
http://www.mortgages.ie/index.cfm/spKey/home.mortgage_rates.html

If you need borrow more than 80% of the home's worth, the current variable rate is 4.32%
If you need to borrow between 50% and 80% of the home's worth, the rate is 4.11%
If you need to borrow less than 50%, the rate is 3.9%

Over 25 / 30 years, the difference between the rates (if they are maintained for the lifetime of the mortgage) will mean you save many thousands in interest payments I'd guess! Personally I'd do my best to get in under the 80% LTV mark if possible, but then again I'm a very risk-averse person

Ritchi

ionapaul wrote: »

Also, you can avail of mortgages with a better rate of interest by providing a bigger deposit, as you are reducing the risk to the bank and they can pass along this in the form of lower interest rates.

For example, take a look at AIBs rates:
http://www.mortgages.ie/index.cfm/spKey/home.mortgage_rates.html

If you need borrow more than 80% of the home's worth, the current variable rate is 4.32%
If you need to borrow between 50% and 80% of the home's worth, the rate is 4.11%
If you need to borrow less than 50%, the rate is 3.9%

Over 25 / 30 years, the difference between the rates (if they are maintained for the lifetime of the mortgage) will mean you save many thousands in interest payments I'd guess! Personally I'd do my best to get in under the 80% LTV mark if possible, but then again I'm a very risk-averse person

But even if you got an 81% mortage, you'll be under the 80% in a year or two, and then avail of the lower rates(or at least that's what the bank told me would happen when I asked).

So getting a percentage doesn't matter so much, just the less you borrow the better off you'll be.

OMD

djimi wrote: »

The bigger the deposit the smaller the mortgage. If you are in no rush to buy then keep on saving. Depending on where you are looking to buy, there is a chance that the houses will be cheaper again this time next year, so bigger deposit + smaller house price = smaller mortgage.

Depends where your money is and what the mortgage rate is. Personally speaking considering mortgage rates are so low I would get a 92% mortgage and invest the rest of the money. Depends on your attitude to risk and how affordable the mortgage repayments are.

D3PO

daddymac90 wrote: »

45k deposit for 220k house decent??or would I need more

You need about Three Fiddy :pac:

In serious thou yes its a decent deposit