The amount needed for a down payment can vary depending on the type of loan and the scope of your project. For construction loans, down payments are often higher than traditional mortgages because the loan covers a build rather than a completed home. In many cases, lenders may require a down payment that ranges from about 10 per cent to 20 per cent of the total project cost.
The final amount may also depend on factors such as credit profile, lender guidelines, and whether you already own the land. If the land is owned, it may sometimes be used as part of the equity, which can reduce the cash needed upfront. This can make it easier to move forward with financing while still meeting lender requirements.
Planning for the down payment early in the process helps set clear expectations for your project budget. Understanding how equity, savings, and financing options work together allows you to prepare with confidence before construction begins.
Have questions about down payment requirements for your home project? Request a free consultation from our custom home builders to explore your options.