The deposit is a percentage of the total purchase price of the property and is typically paid by the homebuyer to the seller or the lender at the time of closing the real estate transaction. The purpose of the deposit is to demonstrate the buyer's commitment to the purchase and to reduce the amount of money that needs to be financed through a mortgage loan. The specific percentage required for a deposit can vary based on factors such as the lender's policies, the type of mortgage, and the buyer's financial situation. In many cases, a higher deposit may result in more favourable loan terms.