June 26, 20263 min read
This is one of the most useful questions to answer early in the mortgage process. A deposit and a down payment are related, but they happen at different stages of an Ontario home purchase.
The factors that change the answer
Here is what matters most:
- The deposit is typically paid shortly after an offer is accepted and shows the buyer's commitment to the transaction.
- At closing, the deposit is generally credited toward the total funds the buyer is contributing to the purchase.
- The down payment is the total amount of your own funds applied to the purchase price, including the deposit already paid.
- Because deposit timing can be fast, buyers should know where those funds will come from before making an offer.
Your mortgage broker can help make sure the full down payment - not only the deposit - has an acceptable and documented source.
Want this applied to your own numbers?
Call Phil Cragg at 866-349-4915 or request a written comparison.
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