OAKVILLE NEIGHBOURHOODS AND HOME PRICES
OAKVILLE NEIGHBOURHOODS AND HOME PRICES
Explaining the Home Buyers Cash Deposit
When you have made an Offer and had it accepted, you will have to provide a Deposit. The Deposit is part of the Down Payment funds that you have saved.
The Deposit usually needs to be handed over within 24 hours of your Offer being accepted- so you must have the money easily available at the time you make the Offer. Many buyers are 'caught out' with their saving in longer-term investments. So you need to plan ahead to be able to access this portion of your savings very quickly. Plan ahead and move these funds into a current account when you think you’re getting close to putting in an Offer.
This Deposit amount is held "in trust" as an expression of good faith that you intend to complete the transaction. It is held by the Listing Brokerage in a Trust Account. At that time it is credited back to you as part of the downpayment and in calculating the final amount of the mortgage.
The amount of the Deposit requested varies by community and the price of the house. Quite often a deposit of 5% is asked for.
I very often will negotiate for a lower deposit amount - and do so successfully.
Many Listing Brokerages do not offer interest on the Deposit. If the Deposit is going to be held in trust for several months, it is normal to negotiate receiving interest on it and a clause requiring it is inserted into the Agreement of Purchase and Sale. That interest will be paid by the Listing Brokerage in a separate cheque after the transaction has closed. It won't be much but it's better than nothing!
The Deposit usually needs to be handed over within 24 hours of your Offer being accepted- so you must have the money easily available at the time you make the Offer. Many buyers are 'caught out' with their saving in longer-term investments. So you need to plan ahead to be able to access this portion of your savings very quickly. Plan ahead and move these funds into a current account when you think you’re getting close to putting in an Offer.This Deposit amount is held "in trust" as an expression of good faith that you intend to complete the transaction. It is held by the Listing Brokerage in a Trust Account. At that time it is credited back to you as part of the downpayment and in calculating the final amount of the mortgage.
The amount of the Deposit requested varies by community and the price of the house. Quite often a deposit of 5% is asked for.
I very often will negotiate for a lower deposit amount - and do so successfully.
Many Listing Brokerages do not offer interest on the Deposit. If the Deposit is going to be held in trust for several months, it is normal to negotiate receiving interest on it and a clause requiring it is inserted into the Agreement of Purchase and Sale. That interest will be paid by the Listing Brokerage in a separate cheque after the transaction has closed. It won't be much but it's better than nothing!
