A deposit is a portion of the cost of an apartment that is paid by the buyer to the seller before the sale and purchase transaction is concluded. With its help, the buyer confirms that he is really ready to buy. When the seller receives a deposit, he cannot sell the property to another buyer. If he violates the condition, he is obliged to return the deposit. If the buyer decides to cancel the transaction, the deposit remains with the seller.
We have already described what a down payment on a mortgage is. Now let's compare it with a deposit. First, let's describe the similarities:
both are parts of the cost of housing;
Both payments are sent to the seller.
There are more differences than similarities:
the first installment is used only when applying for a singapore mobile database mortgage loan, and the deposit is not related to lending in any way. It is paid without the participation of the lender - directly from the buyer to the seller;
The first installment is paid at the time of the transaction, and the buyer makes a deposit in advance.
the buyer can lose the deposit if he refuses the deal. It is quite difficult to lose the amount spent on the down payment. For this to happen, two unfavorable factors must come together at once. The first is that the borrower stops making mortgage payments. The second is that the apartment will become so cheap that after its sale all the proceeds will go to repay the loan.
Although the deposit is not related to lending, this does not mean that it cannot be used when buying an apartment on credit. Often, the seller is paid a deposit so that he removes the ad for sale from advertising sites. The transaction for the transfer of the deposit must be official and notarized. This will allow the amount of the deposit to be included in the first payment on the mortgage loan.