littlesteview, Home Buyer in Campbell Hall, NY

What is the typical deposit given when someone is buying a home?

Asked by littlesteview, Campbell Hall, NY Tue Apr 23, 2013

Referring to homes in the Ottawa, ON Canada region but interested in any response.

Help the community by answering this question:


It depends. Typically $500 - $1,000. However, I once sold a $200,000 house with only a $100 deposit. If my buyer is going to write a low ball offer, then I tell them the lower the offer, the higher the deposit should be if they want the Seller to look at this seriously. Sometimes it is hard for home buyers to come up with a large deposit. The reality is they will have a chunk into it before it closes anyway.

For example... $500 earnest money deposit, $300-$500 inspections and another $450 for an appraisal. So they are in it BEFORE closing for a chunk anyway. (In this scenario maybe even $1,450). That is why I usually advise my clients not to worry if they see an EMD of only $500.

I hope this information helps!
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0 votes Thank Flag Link Tue Apr 23, 2013

I am going to assume that you mean an EMD deposit. The typical deposit is probably $1,000.00 for homes up to $100,000. But the stronger the initial deposit, the stronger your offer looks. I have even had clients submit a $50,000 EMD on a $400,000 house to make the Listing Agent pay attention to an offer.

But I would say the average EMD deposit is $1,000 - $5,000.00. But if you are talking about the deposit the lender requires on a home, that will range from 3.50 % of the purchase price for an FHA mortgage to 5 - 20% of the purchase price for a Conventional loan. Of course you can put more down if you like.

Not to confuse you, but a Veteran here in the states can get a VA loan and purchase a home with no money down, if the deal is written correctly.

I know this answer varies as far as the down payment is concerned, but the truth is there are many ways to purchase a home with varying deposits.

I hope that helps a litlle anyway.

Thank you,

(248) 379-6547
0 votes Thank Flag Link Tue Apr 23, 2013
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