Homes7 min read·Updated 28 June 2026
Should a first-time buyer stretch to 95% LTV?
A smaller deposit can get you moving sooner, but the monthly payment, rate and resilience of your budget all deserve equal attention.
What the deposit changes
A higher loan-to-value ratio can mean a larger payment and fewer available rates. It may also increase the cost of refinancing if property values fall.
When it can make sense
Stretching may be reasonable when income is stable, the payment remains comfortable after a stress test and waiting would materially change the plan.
Build a buffer first
Do not use every dollar for the deposit. Keep cash for moving costs, repairs and several months of essential expenses.