Real estate
In a property purchase, the equity ratio is the share of the purchase price funded from your own money, with a benchmark of 20-30%.
In a property purchase, the equity ratio describes what share of the purchase price comes from your own funds rather than from a loan. Own funds include, for example, savings and existing assets.
A common benchmark is 20-30%. A higher equity share usually reduces the loan amount needed and can have a favourable effect on the financing terms.
The right figure depends on individual circumstances, such as income, purchase price and associated costs. The benchmark is a point of orientation, not a fixed requirement.
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