economy
May 4, 2026
The mistakes you might be making when saving for your home down payment
Buying a home is one of the most important financial decisions for households, so properly planning the down payment is key to achieving it without jeopardizing financial stability...
TL;DR
- Saving for a down payment is crucial for homeownership and affects mortgage terms.
- Common mistakes include underestimating associated costs (appraisal, title search, closing fees), not having a clear savings plan, and incurring new debt.
- In Colombia, down payments range from 10% to 30% of the property value, with VIS housing at 10-20% and non-VIS at 20-30%.
- Absolute down payment amounts can range from $26 million to over $80 million Colombian pesos, depending on housing type and location.
- Saving time varies (18-24 months typically) based on income, savings rate, and external funds like severance pay or subsidies.
- The Loan to Income (LTI) ratio suggests the first mortgage payment shouldn't exceed 40% of family income.