Is a Down Payment the Same as a Deposit?

Some people confuse the deposit and the down payment. Think of the deposit as a down payment on your down payment. The amount is typically around $10,000 but can vary depending on how serious you are about buying the home, and the price. The deposit comes in the form of a certified cheque or bank draft with the Offer to Purchase. This deposit will be deducted from your required down payment amount.

There is a lot to know about buying a home before you dive in. Lean on your real estate agent and their team of professionals to ensure you’re aware of all the requirements as well as the options available. Your financial advisor, lawyer and real estate agent know the ins and outs of the purchasing process. You don’t have to navigate this road alone.