Cash needed to buy a home
Buying a home has two limits: the cash you need on completion day and the payment you can afford each month. Check both with your own figures.
How much cash you need saved to buy a home
Enter the price, the mortgage amount, the purchase taxes and costs and your savings. The calculator tells you how much cash you need on completion and whether you have enough. Add the rate, term and your income to see the payment and the share of your income it takes.
Example: for a 200,000 home with a 160,000 mortgage and 14,000 of costs, you need 54,000: a 40,000 deposit and 14,000 of costs. With 60,000 saved you have 6,000 left. At 3% over 25 years the payment would be 758.74 a month, 27.1% of a 2,800 income.
How it is calculated
- Cash needed = price − mortgage amount + purchase costs.
- Left over (or short) = savings − cash needed; with a cushion, the money you want to keep is also deducted.
- Payment = fixed-payment loan at the rate and term entered. Affordability = payment ÷ monthly take-home pay.
Assumptions
- You estimate the purchase costs (taxes, legal fees, registration, valuation…): they depend on the country and region.
- How much the lender finances depends on the bank and the valuation.
Frequently asked questions
How much cash do I need to buy a home?
The part of the price the lender does not finance (the deposit) plus purchase taxes and costs. In the example, a 40,000 deposit and 14,000 of costs: 54,000.
What costs are involved in buying a home?
Purchase taxes, legal fees, registration, valuation and similar costs. They vary a lot by country, region and whether the home is new or not: estimate them for your case.
How much will the lender finance?
It depends on the lender, your profile and the valuation. Enter the amount you are offered; the calculator shows what share of the price it represents.
Why keep a cushion?
Because after buying come moving costs, furniture and repairs, and you should still have an emergency fund. Running your savings down to zero on completion day is risky.
What payment is reasonable?
A cautious guideline is to keep all your debt repayments below 30–35% of take-home pay. The calculator warns you if the payment goes above that.