You are here: Home Deposits Blog / The Next Big Thing in Down Payments On A House

The Next Big Thing in Down Payments On A House

the next big thing in down payments on a house
For many, down payments on a house are the toughest part when it comes to buying a home. That, and qualifying for the mortgage.

Let me explain...

There’s two main things that people struggle with when it comes to putting a down payments on a house:

  1. Saving up enough money for the down payment so you can buy a home.
  2. Having the cash available for the deposit. For many, it's tied up in their current home equity or in investments.

When people buy a home, there’s two main instances where you will need to have money available. The obvious being on closing day (when you get the home) because you have to provide your 5%+ down payment on the house.

The other more overlooked time is the deposit required upon acceptance of an offer to buy a home. You need to provide a deposit with your offer. Depending on where you’re buying, that could easily be up to 10% of the value of the home you’re buying.

Not everyone has that type of money available. Traditionally with down payments on a house, people will take a line of credit on the value of their home or liquidate their investments.

Both of those options take time, can require bank approval and home appraisals and can be costly.

The next big thing in down payments on a house is making the deposit process quicker, easier and more flexible - this is our vision at Home Deposits Now.

Instead of having to come up with cash for the initial deposit that eventually will become part of the down payment on a house, you can use a deposit guarantee. This allows you to keep your money where it is until you actually need it to close on a home.

Deposit Guarantees in lieu of deposits allow you to make offers and have the deposit instantly available for the offer. You can also increase it on the spot, making your bids more competitive.

You won’t need the cash for the down payment on a house until the closing date. You can leave your money in your home equity or your investments and avoid costly bridge loans.

It provides you with much more flexibility and can save you money too.

Our Deposit Guarantee allows you to take advantage of the next big thing in down payments by offering deposit guarantees on the purchase of your next home.

If you have any questions don’t hesitate to reach out.

Read More from our Blog

why homeowners are using deposit guarantees when selling

8 MIN READ

Why Homeowners are Using Deposit Guarantees When Selling

A house Deposit Guarantee can be used as a substitute for a cash deposit which acts as the insurance that the buyer will pay the deposit on closing. Deposit Gua...

/images/Blog/aron_truax.jpg

Aron Truax, CMO

POSTED 07 July, 2022

all about house deposits faqs and help for home buyers 2022

8 MIN READ

All About House Deposits: FAQs and Help for Home Buyers 2022

Frequently Asked Questions about Home and House Deposits

/images/Blog/leon_listes.jpg

Leon Listeš, Business Analyst

POSTED 05 July, 2022

5 things you need to know about house deposits in ontario 2022

7 MIN READ

5 Things You Need to Know About House Deposits in Ontario 20...

In 2022 house deposits can seem a little daunting at first, but we’re here to help!

/images/Blog/nathan_neyedly.jpg

Nathan Neyedly, Program Manager

POSTED 03 July, 2022

home deposits 101 can you borrow your house deposit

5 MIN READ

Home Deposits 101: Can You Borrow Your House Deposit?

When buying a home in Canada, the house deposit is usually between 5-10% of the purchase price of the property. Considering the current housing market, this is ...

/images/Blog/nathan_neyedly.jpg

Nathan Neyedly, Program Manager

POSTED 25 June, 2022

why should i use a deposit guarantee

8 MIN READ

Why Should I Use a Deposit Guarantee?

A house Deposit Guarantee can be used as a substitute for a cash deposit which acts as the insurance that the buyer will pay the deposit on closing. Deposit Gua...

/images/Blog/naresh_vyas.jpg

Naresh Vyas, VP Business Development

POSTED 22 June, 2022

everything you need to know about deposit guarantees

5 MIN READ

Everything You Need to Know about Deposit Guarantees

If you’re thinking about purchasing a house, property, or land, you probably already know that a cash deposit is required to guarantee the commitment of the buy...

/images/Blog/naresh_vyas.jpg

Naresh Vyas, VP Business Development

POSTED 21 June, 2022

home buyer help deposit guarantees

4 MIN READ

Home Buyer Help - Deposit Guarantees

Like the ones we offer here at Home Deposits Now, Deposit Guarantees first became popularized in Australia before coming to North America. Deposit Guarantees ar...

/images/Blog/annette_vais.jpg

Annette Vais, Business Dev. Manager

POSTED 15 June, 2022

why home buyers are leveraging deposit guarantees

3 MIN READ

Why Home Buyers are Leveraging Deposit Guarantees

When selling your house, you can state your preferred deposit amount and method in the listing. Deposit Guarantees have some massive advantages! Keep reading to...

/images/Blog/aron_truax.jpg

Aron Truax, CMO

POSTED 10 June, 2022

home deposits 101 - canadian edition

8 MIN READ

Home Deposits 101 - Canadian Edition

Almost everyone has heard of a down payment when buying a house, but do you know about deposits? Many people confuse the two, but they’re very different! Here’s...

/images/Blog/nathan_neyedly.jpg

Nathan Neyedly, Program Manager

POSTED 01 June, 2022

how much is a house deposit in canada

3 MIN READ

How Much Is A House Deposit in Canada?

A house deposit, not to be confused with a down payment, is an offer of good faith which shows the seller that you are determined to purchase the property. To ...

/images/Blog/annette_vais.jpg

Annette Vais, Business Dev. Manager

POSTED 26 April, 2022