Homebuyers still have misconceptions of deposit

Nar said that the typical deposit for first buyers has remained between 6% and 9% since 2018. For repeated buyers, the figure last year was considerably higher at 23%-a reflection of rising equity over time.

On the other hand, repeated buyers set up only 13% in 2014, Lautz said.

Since DAR started collecting data in 1989, the median down payment for first buyers has never exceeded 10%.

“This critical knowledge informs the potential buyer about how much to save and – just as important – how long that process can last,” Lautz said.

Financing options, misguided guidance

Conventional loans remain the most common path to homeowner, but many first buyers also turn to government financing.

Almost 29% of users of the first use Federal Housing Administration (FHA) Loans, which require a minimum deposit of 3.5%. Another 9% used US Department of Veterans Affairs (From) loans that do not require a down payment.

Lautz also emphasized the importance of obtaining accurate information.

“Unfortunately, 97% of the Nar – members interviewed collaborated with customers who consulted family members for advice instead of a broker – even if the family member did not live in the house.”

With potential buyers, she insisted on seeking professional help through mortgage brokers, housing advisers or tools such as the Tendering resource Website, which connects buyers with local and national utilities.

Where the money comes from

For nearly 70% of the first buyers, their deposit of personal savings came. Another 25% was based on gifts from family or friends, who fell from a peak of 36% in 2010, when the federal government offered a first tax credit for the Huisope.

With the median age of a first buyer who reaches a record high of 38, fewer people are looking for financial help from family.

“It can be uncomfortable to ask family for help buying their first home,” said Lautz.

There is also a growing trend of first buyers who use financial assets to finance their down payments. In 2024, 21% used resources such as shares, pension accounts or even cryptocurrency – a strong increase in reach of 8% to 11% between 1997 and 2002.

Prosperous heirs also play a slightly greater role. Although less than 10%still, the share of the first buyers who used hereditary money reached a record high of 7%.

As potential buyers navigate through an increasingly complex housing market, understanding realistic expectations of the down payment and available loan options continues to be crucial, Lautz said.

“Searching for the right source is better than trusting outdated information or, worse, wrong information,” she added.