How Much Do You Actually Need to Save for a House Deposit?
Buying a home is the biggest financial goal most people will ever set. Here's how to work out exactly what you need — and a realistic plan to get there.
A house deposit is usually the biggest savings target most people will ever work toward. It can feel overwhelming — but it doesn't have to be.
What's the minimum deposit?
In the UK, the minimum deposit for most mortgages is 5% of the property price. So for a £300,000 home, you need £15,000. However, saving a larger deposit — 10% or 20% — gives you access to better mortgage rates and lower monthly repayments.
Why saving 10% or more makes sense
Lenders offer their best rates to borrowers with a 25–40% deposit. With a 5% deposit, you'll pay a higher interest rate and likely need mortgage insurance. Over a 25-year mortgage, that can cost you tens of thousands more.
How inflation affects your target
Here's something most people miss: house prices tend to rise with inflation. If you're saving for 5 years, your target could be 10–15% higher by the time you get there. That's why our calculator adjusts your goal for inflation automatically.
A simple plan
- Work out your target deposit amount
- Add 5 years of expected house price growth
- Use a savings calculator to find your monthly figure
- Open a Lifetime ISA (UK) or FHSA (Canada) for tax benefits
Use the Ona Planner calculator to find exactly what you need to save each month based on your timeline and the market conditions in your country.
Try it yourself
Use Ona Planner to calculate exactly what you need to save — adjusted for inflation and your country.
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