A house deposit, not to be confused with a down payment, is an offer of good faith which shows the seller that you are determined to purchase the property. To learn more about house deposits vs down payments click here
Paying your house deposit is a critical step in the home buying journey. In this blog post, we will be answering the most common questions about what to expect when it comes to paying your house deposit.
When do I pay my house deposit?
You will be asked to provide a deposit once your offer on a property has been accepted.
So, how much will my house deposit be?
In Canada there is not a standardized, set amount of money that will secure your deposit, however, the average home deposit can hover between 5 - 10% of the total property value based on the offer put forward. While a smaller house deposit may be more beneficial to buyers from a cash-flow perspective, providing a larger deposit in your offer usually makes for a more competitive offer.
Do I have to pay my deposit in cash?
Short answer: No. Canadians now have the option of using a Deposit Rocket cash equivalent guarantee instead of making an offer to purchase a home with a cash deposit.
For a quote, you can use our free Calculator here.
Will I get my house deposit back?
No, a house deposit when buying a home isn’t the same as a deposit you pay towards a landlord as a renter. Instead of getting your deposit back, at closing, your house deposit will contribute towards your down payment and closing costs for the property.
If you have any questions or concerns about house deposits, please check out our Deposit Rocket FAQs here or get in touch with us here. We would be happy to help!