A larger deposit to reduce the Loan to Value (LTV) ratio has several advantages

Lower Interest Rates: A lower LTV generally qualifies you for lower interest rates. Lenders see a lower LTV as less risky because the loan amount is a smaller percentage of the property value.

Smaller Loan Amount: The more you put down as a deposit, the less you need to borrow. This results in lower monthly payments and less interest paid over the life of the loan.

Increased Equity: A larger deposit means you start off with more equity in your property. This can be beneficial if property values decline, as it provides a buffer against falling into negative equity (owing more than your property is worth).

More Attractive to Lenders: A lower LTV makes you a more attractive borrower to lenders, possibly giving you access to a wider range of loan products and terms.

Reduced Risk of Loan Denial: With a lower LTV, the loan is less risky for lenders, reducing the chances of loan denial.
Flexibility in Refinancing: In the future, having a lower LTV can give you more options and better rates if you choose to refinance your mortgage.

In summary, a larger deposit reduces the LTV ratio, which in turn lowers the risk for the lender, potentially leading to better loan terms for the borrower.