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May 25, 2022
Is my Deposit part of my Down Payment?
Some confusion about what's a Deposit and what's a Down Payment on a House that I Buy. Every Offer in Ontario that is accepted must have a deposit cheque for the agreed amount delivered to the Listing Real Estate Brokerage within a specified time frame. Usually with 24 hours of when the offer was accepted.
Like I said in the Video, Deposits are between $20,000 and $75,000 on average from Buyers on Accepted Offers. Draft, Wire Transfer are good to use. Some will accept personal cheques.
The Down Payment is a decision that you make with yourself and the bank as to what strategy will work best for you. Let's decide you put $50,000 as your Deposit on the House you just bought for $500,000. You talk to the and decide you want to 20% as your down payment on the house. Therefore 20% of $500,000 is $100,000. You have already given $50,000 in your deposit, so to get to your Down Payment of $100,000, you will need to come up with $50,000.
Ultimately, the Deposit becomes part of the Down Payment.
The Deposit is due when the Offer is Accepted and the Down Payment is due near Closing Day.
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