The average down payment can vary depending on the loan type and the current market conditions. Advise your clients to prepare a down payment of anywhere from $10,000 to $15,000 at least.
Should clients put more than the average down payment?
Whether it makes sense for your clients to put down more than the average down payment on a house depends on many considerations. Guide them in weighing the pros and cons. A larger down payment can lower the loan amount and reduce monthly payments. It can also limit the total interest paid over the life of the loan. It may also help buyers qualify for better terms.
But waiting to save a larger down payment isn’t always the best move. Your clients might end up spending more on rent while they wait or miss opportunities. In some cases, it can be more practical to enter the market sooner with a smaller down payment.
There’s no fixed rule when it comes to down payment size. What works for one client might not work for another. Saving beyond the average might offer long-term advantages, but it can also tie up funds that might be needed. As such, you should advise your clients to think about external spendings such as moving costs, home maintenance, or unexpected expenses.
As a mortgage broker, one good approach is to review your clients’ full financial profile. Help them strike a balance between what they can pay now and what they’ll be comfortable with later. A smart down payment strategy should reflect both their current circumstances and future plans.