Target deposit amount and months to reach it from current savings

How Deposit Targets Work

A house deposit is the upfront cash contribution toward property purchase. Typical requirements range from 5% (first-time buyer minimum in some markets) to 25% (optimal for best mortgage rates). Larger deposits reduce lower mortgage rates and reduce monthly payments. The target amount depends on property price and required percent. Reaching that target from current savings requires sustained monthly contribution at whatever interest rate your savings account pays. The calculator shows how long this takes at your specific numbers.

Realistic Deposit Percentages

5% deposit: minimum for first-time buyer programs in some markets; limits lender choice and rates. 10% deposit: standard minimum in most markets; rates improve notably. 15-20% deposit: typical target; best rates become available. 25%+ deposit: premium tier with lowest rates available. Investment property deposits often require 25-40% minimum. Mortgage rate differences between 5% and 20% deposits often save 0.5-2% annually, which compounds to tens of thousands across a 25-year mortgage.

Worked Example for First-Time Buyer

Property 300,000. Deposit 20%. Current savings 10,000. Monthly savings 1,000. APY 4%. Target 60,000. Shortfall 50,000. Months to target approximately 48 (4 years). The buyer reaches 20% deposit in 4 years at current saving rate. Higher monthly savings or accepting smaller deposit (10% at 30,000 target) shortens timeline significantly. Higher APY accounts (4-5% high-yield savings) accelerate slightly versus low-yield accounts. The calculator lets you test scenarios.

Where to Keep Deposit Savings

High-yield savings accounts earning 4-5% in current rate environments. Money market funds with similar yield. Short-term CDs or term deposits for committed portions. Avoid: stocks (volatile, may drop when you're ready to buy), retirement accounts (penalties and restrictions), long-term CDs that lock funds past purchase timeline. Liquidity matters — your deposit money needs to be accessible within days when an offer is accepted.

What the Calculator Does Not Model

Rising property prices during saving period — target may grow faster than savings. Additional costs beyond deposit: property transfer tax, legal fees, survey costs, moving expenses (typically 3-8% of property price on top of deposit). Income growth that might allow higher monthly savings over time. Government first-time buyer schemes that may affect required deposit percentage. Interest rate changes that affect both mortgage rate available and savings account rate. The calculator shows clean math at fixed inputs; real-world property purchase requires flexibility in targets and planning.