Deposit vs Down Payment

Written By Andrea Case
Living Room with grey couch

If you're in the market to buy a new home, it's important that you know the difference between deposits and down payments AND that you have adequately saved to cover said costs. The major differences between a home-buying deposit and a down payment are in the amount and timing of payment.
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Deposit:

  • No standard required amount

  • Paid at the time of offer

  • Represents commitment to purchase

  • Goes towards down payment

Down payment:

  • Typically ranges from 5% to 20% of the home’s purchase price

  • Paid on possession day

We are here to help you on your home buying journey and help you find the home of your dreams. Contact us to get started!

Andrea Case
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Buying: Your First Step