Deposits

Question 1

What is a deposit?

Answer 1

• a down payment made at the time of purchase
• amount of money a buyer has available to contribute toward the purchase of the home

Question 2

How much do buyers usually have to come up with for a deposit?

Answer 2

• between 10% and 20% of the price of the house

Question 4

What is collateral security?

Answer 4

• if the loan granted does not cover entire purchase price
• buyer may be asked to assist with collateral securing from another source
• e.g. surrendering the value of a life insurance policy

Question 5

What can the bank provide when a person is buying a home for the first time and doesn’t have a deposit?

Answer 5

• provide a no-deposit bond of up to 110%
• bond will cover full value of home and all costs involved