The idea that you need 20% down to buy a home is one of the most persistent myths in real estate, and it hasn’t been true in any of the four major English-speaking markets for years. Governments in the US, UK, Canada, and Australia have all built programs specifically designed to get buyers into homes with far smaller deposits. The details, and the trade-offs, differ enough between countries that it’s worth understanding exactly what’s on offer in each.

United States: As Little as 3%, Plus Local Grants

US buyers have the most program variety to choose from. FHA loans require just 3.5% down with a credit score as low as 580. Conventional options go even lower on paper: Fannie Mae’s HomeReady and Conventional 97 programs, along with Freddie Mac’s Home Possible, all allow 3% down for qualifying buyers. On top of these loan programs, many state and local governments layer their own down payment assistance: grants up to $25,000 in some programs that typically don’t need to be repaid, plus deferred-payment second loans in the $5,000 to $25,000 range that are only repaid when the home is eventually sold. The trade-off is that nearly all of this is loan-specific and location-specific, there’s no single national program, which means the actual assistance available depends heavily on where in the US a buyer is purchasing.

United Kingdom: 5% Government-Backed, Plus a Savings Bonus

The UK’s Mortgage Guarantee Scheme lets buyers put down just 5% on homes up to £600,000, with the government guaranteeing part of the loan to the lender so banks are willing to offer a 95% mortgage. Separately, the Lifetime ISA rewards buyers who plan ahead: save up to £4,000 a year and the government adds a 25% bonus, up to £1,000 annually, though the scheme is capped to properties worth £450,000 or less. Combine the two, and a UK first-time buyer can realistically assemble a 5% deposit with meaningful government help, as long as they’re buying below the relevant price caps.

Canada: 5% Minimum, With Real Limits at the Top End

Canada’s minimum down payment is 5% on homes priced under $500,000, rising to a blended rate, 5% on the first $500,000 and 10% on the portion above, for homes between $500,000 and $1.5 million. Above $1.5 million, buyers need a full 20% down and cannot access mortgage default insurance at all, a meaningful cliff edge for buyers in expensive markets like Toronto and Vancouver. On the savings side, the First Home Savings Account lets buyers contribute up to $8,000 a year, $40,000 lifetime, tax-deductible going in and tax-free coming out for a home purchase, and it can be paired with the RRSP Home Buyers’ Plan, which allows withdrawals up to $60,000 per person, for a combined $200,000 in tax-advantaged savings for a couple.

Australia: 5% With No Mortgage Insurance, or as Little as 2% Through Shared Equity

Australia offers two distinct paths. The First Home Guarantee lets eligible buyers purchase with just a 5% deposit while the government guarantees the remaining 15% to the lender, meaning no Lenders Mortgage Insurance, normally a significant added cost for low-deposit buyers. As of a recent expansion, the scheme has unlimited places and no income restrictions, though property price caps still apply and vary significantly by city, from $1.5 million in Sydney down to $850,000 in Perth. For buyers who can’t yet manage even 5%, the newer Help to Buy shared equity scheme requires just a 2% deposit, with the government contributing up to 40% of the purchase price on a new home, 30% on an existing one, in exchange for an equity share it recoups when the home is eventually sold or bought out. Help to Buy does carry income caps, $100,000 for individuals and $160,000 for joint applicants, and is limited to 10,000 places a year.

The Common Thread, and the Real Catch

Every one of these programs solves the same basic problem, a smaller deposit, faster path to ownership, but each comes with a corresponding trade-off that buyers need to weigh. Lower deposits generally mean paying mortgage insurance, except where a government guarantee removes it, as in the US FHA program or Australia’s First Home Guarantee, accepting a shared-equity arrangement that limits future gains, as in Australia’s Help to Buy, or committing to live in the home as an owner-occupier for a minimum period. None of these programs make homeownership free of cost, they simply shift when and how that cost shows up.

How Much You Actually Need to Save

Across the US, UK, Canada, and Australia, a 20% down payment has effectively become optional for a large share of first-time buyers, with government-backed programs bringing realistic minimums down to 5%, or in Australia’s case, as low as 2%. The real work for any buyer is matching the right program to their situation, since price caps, income limits, and location-specific rules mean the best option varies enormously depending on exactly where, and what, someone is buying.