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💰 What Is a Real Estate Deposit—and Why It’s So Important When Buying a Home in Winnipeg
If you're buying or selling a home in Winnipeg, one of the first things that comes up after an accepted offer is the deposit. But what exactly is it? How much should it be? And why does it matter so much?
Let’s break it down in simple terms.
✅ What Is a Real Estate Deposit?
A deposit is a sum of money that a buyer submits at the time, or shortly after, their offer to purchase a home is accepted—typically within 24 to 48 hours. It’s a way of showing the seller that you’re serious and committed to the deal.
But here’s something buyers often ask:
“Is the deposit an extra cost on top of the purchase price?”
No—it’s not. Your deposit is part of your down payment.
So if you’re buying a home for $400,000 and plan to put down $40,000 total, and your deposit is $10,000, then on closing day, you’ll just need to bring the remaining $30,000. It’s not a fee—it’s money that goes toward the final purchase.
💡 How Much Is a Typical Deposit?
In Winnipeg, real estate deposits commonly range from 1% to 5% of the purchase price, depending on the home and how competitive the market is.
As an example:
On a $350,000 home, the deposit might range from $5,000 to $15,000.
If you’re in a multiple-offer situation, a stronger deposit can help your offer stand out to the seller.
🏦 How Do You Pay the Deposit?
Deposits can be paid using a few different methods—your Realtor will help you choose the best option. Typically, you’ll use one of the following:
Bank draft (most common)
Certified cheque
Personal cheque (sometimes accepted, though it may delay processing)
Cash (with strict limits)
⚠️ Important: Most brokerages will not accept cash deposits over $10,000 due to anti-money laundering regulations. If you’re considering paying in cash, check with your Realtor or the listing brokerage before you bring it in.
Once received, the deposit is held in trust by the listing brokerage or seller’s lawyer until the sale closes.
🛡️ Why Is the Deposit Important?
The deposit offers protection and reassurance to both the buyer and the seller.
For Sellers:
It shows the buyer is financially committed.
If the buyer walks away without legal grounds, the deposit may be kept as compensation.
Once the offer is firm, sellers stop showing their home to other buyers. A strong deposit helps them feel confident the buyer will complete the transaction.
For Buyers:
It shows you’re a serious, qualified buyer.
It’s a key part of your offer strategy—especially in hot markets.
It goes toward your down payment, so it’s not an extra cost.
⚠️ Can You Lose Your Deposit?
It’s possible, but only under specific circumstances.
If a buyer backs out of the deal without a valid reason (as defined in the offer conditions), the seller may have the right to keep the deposit.
However, if you include conditions—like financing or a home inspection—and the deal falls through for one of those reasons (and during the specified time period), your deposit is usually returned in full.
The best way to protect yourself?
Work with an experienced Realtor, understand your conditions, and stick to the agreed timelines.
📝 Final Thoughts: A Small Step With Big Significance
A real estate deposit might feel like a small piece of the home buying puzzle, but it plays a big role in building trust, protecting both parties, and keeping the deal on track.
💡 And remember—your deposit is part of your down payment, not a separate or additional cost.
🤝 Ready to Make Your Move in Winnipeg?
Whether you’re buying your first home or selling your current one, I’m here to guide you through every step of the process—clearly, confidently, and with your best interests at heart.
📩 Get in touch today, and let’s discuss your personal real estate goals!
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