What Is A Mortgage Deposit?

Only Half of Canadians Know!

Many Canadians have a good understanding of financial services terms. A recent Angus Reid survey revealed that 51 percent of respondents were confident they knew what a mortgage deposit was, with 48 percent admitting they were “not very confident” or “not at all confident” they understood the term.

It’s easy to see why there’s some confusion over the definition, as home buyers often use the terms “deposit” and “down payment” interchangeably. While they both refer to money put forward in the home buying process, here’s some clarification of each term:

A Deposit

A deposit is the initial funds the buyer submits during the offer process to secure or commit to a property they wish to purchase, as a gesture of trust and good faith to the seller. It’s typically made at the time of the offer, or upon acceptance of the offer. There’s no typical amount for the deposit, although, in a hot housing market, an offer with the highest deposit could be more attractive to the seller.

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Location, location, location. 

You’ve definitely heard how important this is in real estate — and that’s because it’s true! Location is a crucial factor when it comes to the value of your home. Not only does what part of town you are in matter, but what is physically near you can actually help or hinder your property value. We put together a list of the most important proximity factors that will increase as well as decrease your home value.

Factors that INCREASE home value

Homebuyers who have children are willing to pay more to live in a home that is closer to schools, especially ones that have a good reputation and high academic scores.

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Need help navigating the Real Estate Market?

Contact THE 905 REAL ESTATE GUYS

We are here to help!

Sean Kavanagh 905.220.9198

Leo Manchisi 905-334-9650