Skip to content
Alexis Leondis

Down Payments Are So Tricky as a Housing Bubble Brews

A guide to when it’s worth borrowing more - or less - than the standard 80% of the value of your new home.

Now how do you pay for it?

Now how do you pay for it?

Photographer: Angus Mordant/Bloomberg

The 2022 homebuying season is kicking into high gear, and it's even more frenzied this year as rising mortgage rates and record-low inventory push buyers to act quickly.

All-cash offers have been the buzz of the past year but most people can't afford them. The more pressing question for anyone seeking to finance a home purchase is how much to pay upfront. In such a hot market, a higher down payment can give buyers an edge in a bidding war, but is there a limit to how much of your savings you should be tying up in your home?