Average deposits for the Monaco top 1% are £8.2 million

High-net-worth mortgage broker, Enness Global, revealed what it described as ‘eye-watering’ mortgage deposits paid by the top 1% of homebuyers around the world.

According to the company’s data, those buying at the very top end of the market tend to put down deposits of 40%, as this provides them with the ability to “secure the best rates and products at that threshold of the market”.

Applying these 40% deposits to sales across 17 of the most prestigious property markets across the world, Enness said that on average, Monaco extracts the largest fees from the super-rich. With an average entry point of almost £20.5 million, the principality encapsulates what it means to be part of the top 1%.  

In Monaco, limited space and available properties means that “even the most modest of homes can command a huge price tag”. As far as the top tier’s mortgage deposits are concerned, current values and a 40% rate dictates that the super-rich can expect to pay around £8.185 million at the top end of the Monaco market – almost 220 times the price of the average UK house deposit.

Following behind Monaco is Hong Kong, which asks ultra-high-net-worths to pay a comparatively reasonable £5.425 million for luxury property, with average deposits of around £2.17 million.  

Wealthy homebuyers in Singapore rank with the third-highest mortgage deposit at £1.643m, while in Sydney (£1.333m), London (£1.240m), LA (£1.209m) and New York (£1.116m) they’re also placing a deposit of over £1m.

Mumbai and Cape Town are home to the lowest property entry price for the top 1% of global homebuyers at £465,038. Even still, the average high-net-worth will place a mortgage deposit to the tune of £186,015.

Speaking on the mortgage deposits of the uber-rich, Enness Managing Director, Hugh Wade-Jones commented: “It might seem strange that those with the means to buy a twenty million pound house would opt to finance it through a mortgage. However, with the current market still presenting some unheard of rates of interest for those with the financial foundations to secure them, it actually makes very good business sense.”

“There are a wealth of private banks that will offer bespoke deals in these instances and by opting for this route, you can not only secure an outstanding long-term rate, but it also opens other doors of opportunity further down the line.” 

LocationProperty Price Entry Point Value of the Top 1%Average HNW Mortgage Deposit @ 40%
Hong Kong£5,425,448£2,170,179
Los Angeles£3,022,750£1,209,100
New York£2,790,230£1,116,092
Sao Paulo£542,545£217,018
Cape Town£465,038£186,015