Deposit for a home purchase can be made up of three different stages.
- The total available deposit available to contribute toward the purchase.
- The holding deposit usually payable when an offer is accepted but prior to the contracts of sale being signed and exchanged.
- The 5 or 10 percent deposit usually payable following exchange of contracts for sale.
When there is only a limited deposit available a 5 or 10 percent deposit requirement can usually be avoided by obtaining a deposit bond or deposit guarantee.