A deposit on a home loan is the amount of money available for the purchase of a home at the time of the loan application. A larger deposit may help you get a better rate on a home loan because it shows the lender that you have the financial means to contribute significantly to the purchase of the property.
It is important to note, however, that the size of your deposit is not the only factor considered by banks when determining the interest rate on a home loan. Your credit history, income, and debt-to-income ratio are all factors that may influence your interest rate.
Borrowers with a good credit history, a stable income, and a low debt-to-income ratio are more likely to receive lower interest rates from lenders. You may be able to negotiate a lower interest rate on your home loan if you have a larger deposit and can demonstrate these financial strengths.
To get the best deal, shop around and compare home loan rates from different lenders. A financial advisor or mortgage broker can also help you understand your options and find a home loan that meets your needs.