Deposits Flashcards
1
Q
What is a deposit?
A
- a down payment made at the time of purchase
- amount of money a buyer has available to contribute toward the purchase of the home
2
Q
How much do buyers usually have to come up with for a deposit?
A
- between 10% and 20% of the price of the house
3
Q
A
4
Q
What is collateral security?
A
- 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
5
Q
What can the bank provide when a person is buying a home for the first time and doesn’t have a deposit?
A
- provide a no-deposit bond of up to 110%
- bond will cover full value of home and all costs involved
