What is the difference between a deposit and a down payment ...
文章推薦指數: 80 %
A down payment, on the other hand, is usually a combination of your deposit and any other money you pay toward the purchase price, while the ... Home/HomeBuyersandSellers/Resources/Buyer-SellerNewsWhatisthedifferencebetweenadepositandadownpaymentinrealestate?AskJoeJuly9,2021Thisisagreatquestion.Althoughtheterms“deposit”and“downpayment”aresometimesusedinterchangeably,theyarenotthesame. Sincedepositscomebeforedownpayments,let’sstartthere.Adepositisthemoneyyousubmitduringtheofferprocesswhentryingtosecureapropertyyouwanttobuy.Thisshowsthesellerthatyouareseriousaboutthedealandit’sconsideredashowofgoodfaith.Providingadepositalsodemonstratesthatyouhavethefinancialmeanstomakethepurchaseandyouarecomfortabletakingonsomedegreeofriskuntilthedealcloses. However,youshouldknowthatinmostcasesadepositisnon-refundableonceconditionstoanoffer,ifany,havebeenfulfilledorwaived. Whilethereisnostandardamountforadeposit,yourrealestaterepresentativecannegotiatethiswiththeseller’srep,alongwiththetimingofanypayment(s).Depositscanbeduewhenanofferismade,onceanofferisaccepted,oranotheragreed-upontime—andcanbeinstaggeredinstallments.Thisshouldallbecapturedinthewrittentermsofyourofferandtheeventualagreement. Ifyourpurchaseofferisaccepted,theRealEstateandBusinessBrokersAct,2002(REBBA)requiresthatthedepositbeheldintrustuntilitbecomespayable.Thisaccountistypicallywiththeseller’sbrokerage. TheRealEstateCouncilofOntario(RECO)administersaninsuranceprogram,whichincludescoverageforconsumerdeposits.Allbrokersandsalespeoplemustparticipateintheprogram.However,thecoverageisnotapplicabletodepositsgivento,orheldby,individualsorcompaniesnotregisteredwithRECO.Thisisimportanttoconsider,especiallyifyouareeveraskedtopayadepositdirectlytoaseller. Oncethedealcloses,yourdepositisappliedtowardsthehome’stotalpurchaseprice. Adownpayment,ontheotherhand,isusuallyacombinationofyourdepositandanyothermoneyyoupaytowardthepurchaseprice,whilethebalanceowingistypicallycoveredbymortgagefinancing. Onevitalfactortobeawareofisthatalender’sappraisalcanlimithowmuchtheyloanyouforaspecificproperty,despitethepriceyoumayhaveagreedtopaytheseller.Discussthiswithyoursalespersontoassessifyouwouldliketoaddafinancingclauseinyouroffer. Downpaymentrequirementscanvarytobeeligibleforfinancing.IencourageyoutovisittheCanadaMortgageandHousingCorporationwebsite,ortalktoyourfinancialadviserandmortgagespecialisttolearnmoreaboutminimumdownpaymentrequirementsaswellasmortgageinsurancerequirementsthatmayapplytodownpaymentsbelowacertainvalue. BuyingrealestateisaseriouscommitmentandIstronglyrecommendworkingwitharealestatesalespersonwhocanhelpyounavigatethenegotiations,aswellasarealestatelawyer. Thiscolumnisforgeneralinformationpurposesonlyandisnotmeantaslegalorprofessionaladviceonrealestatetransactions. JosephRicherisRegistraroftheRealEstateCouncilofOntario(RECO).HeisinchargeoftheadministrationandenforcementofallrulesthatgovernrealestateprofessionalsinOntario.Youcanfindmoretipsatreco.on.ca,followonTwitter@RECOhelpsoronYouTubeathttp://www.youtube.com/RECOhelps. PublicadvisoryissuedregardingWynnRealtyCorporationandWayneSimpsonLookingforinformationaboutbuyingahome?WhyyoushouldworkwitharealestatesalespersonSeehowRECO'sregulatoryprocessworksLatestNewsAskJoeDecember3,2021Whatshouldbuyersknowaboutbiddingwars?Topics:biddingwarsbudgetcompetingoffersmarketanalysisofferprocessAskJoeNovember26,2021Listpricevssaleprice:KnowthedifferenceTopics:askingpricelistingpricesalepriceAskJoeNovember19,2021Arebullyofferslegal?Topics:bullyofferSeeAll
延伸文章資訊
- 1Deposit and down payment aren't one and the same: Ask Joe
To be clear, the deposit is the money you pay up front to secure, or commit to, an agreement of p...
- 2The Difference Between Your Deposit and Down Payment
When you find a house and make an offer on it, you'll make a deposit on it. Like the landlord, yo...
- 3Deposit Vs Down Payment: Explaining the Difference
- 4Deposit vs. Down payment - The Data Advocate
Deposit vs. Down payment ... The down payment is the amount of cash offered by a buyer or purchas...
- 5What is the Difference between Deposit and Down Payment?
That amount it all depends on the purchase price and how quickly you will be closing on the sale....