Home Buyer Guide: How Deposits Really Work in BC Real Estate
- erin0582
- Sep 26
- 2 min read
When buying a home, one of the first major steps you’ll face is paying a deposit — but how exactly does it work?
Timing of Your Deposit
The timing is usually negotiated between you and the seller. In most cases, the deposit is due when you remove subjects and conditions. This ensures that once you commit to the purchase, funds are secured to confirm your intent.
How Much is the Deposit?
There’s no fixed rule. Deposits typically range between 5–10% of the purchase price, but the exact number depends on the agreement in your contract. In rare cases, some sellers may request a non-refundable deposit, though this is not the standard.
What Happens to Your Deposit?
Your deposit is applied toward your total down payment once the transaction completes. The remainder of the purchase price is then covered by your mortgage lender. Speaking with your mortgage advisor is crucial to understand how the financing procedure works in full.
Who Holds the Deposit?
Deposits are generally held in trust by the buyer’s real estate brokerage, ensuring your funds are safe and cannot be released without proper authorization. Payments are typically made via bank draft or wire transfer.
Why it MattersYour deposit is more than just money up front — it demonstrates good faith to the seller, protects both parties during the transaction, and secures your position as a serious buyer.
If you’re considering buying a home or are still in the early stages and have questions about deposits or the overall process, reach out to me anytime.
📞 Erin Price Emery
Contact me: erin@priceemery.com
Call or text: 604-767-7725
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