When you're buying a home—especially for the first time—the terminology can be confusing. Two of the most commonly misunderstood terms in Canadian real estate are "deposit" and "down payment." While they’re both related to the money you put toward purchasing a home, they serve very different purposes. Let’s break down what each term means, how they’re used, and what you need to know as a homebuyer in today’s market.

💰 What Is a Deposit?

The deposit is the money you put forward with your offer to purchase a home. In most Canadian markets, it’s customary to include a deposit as a sign of good faith. This shows the seller that you’re serious and committed to the purchase.

• Amount: Typically 1–5% of the purchase price, but it can vary depending on local market conditions and negotiations.

• When it's paid: Usually within 48 hours (or as specified in the contract) of your offer being accepted.

• Where it goes: The deposit is held in trust (usually by the buyer’s real estate brokerage).

• What happens to it: The deposit becomes part of your down payment if the sale goes through. If the deal falls apart due to conditions (like financing or inspection), you may get it back—depending on the terms of your agreement.

Example: You make an offer on a $600,000 home and include a $20,000 deposit. If your offer is accepted, that deposit counts toward your total purchase funds.

🏦 What Is a Down Payment?

The down payment is the total amount of money you are putting toward the purchase price of the home, and it's separate from the mortgage. In Canada, the minimum down payment depends on the price of the property:

• 5% for homes priced up to $500,000

• 5% on the under $500,000 portion, and 10% on the portion between $500,000 and $1.5 million

• 20% for homes priced at $1.5 million or more

• 20% is considered normal for investment properties

The down payment is due on closing day and directly affects the amount of mortgage you’ll need from your lender.

Continuing our example: If your down payment is $60,000 on that $600,000 home, and you’ve already paid a $20,000 deposit, you’ll need to provide the remaining $40,000 on closing.

🧾 Key Differences at a Glance

💡 Why This Matters for Canadian Homebuyers

Understanding the difference between a deposit and a down payment helps you prepare financially and avoid last-minute surprises. Here are a few quick tips:

• Have your deposit ready when you start house hunting. It needs to be accessible (not locked in investments or RRSPs with withdrawal restrictions).

• Budget for the full down payment, minus your deposit amount.

• Work with a REALTOR® and mortgage professional to ensure all your paperwork and finances are in order, especially if you’re buying with conditions like financing or inspection.

• Avoid large loans before a home purchase as this will affect your debt service ratio

• Avoid moving large sums of money between accounts as the bank needs to be able to track funds for at least 90 days

👋 Let’s Talk!

Whether you're a first-time buyer or an experienced homeowner, we're here to help you every step of the way. At David Lowes Personal Real Estate Corporation, we provide clear, honest guidance to help you make confident decisions in the Cowichan Valley and beyond.

Have questions about deposits, down payments, or the homebuying process in general? Reach out anytime—I’d be happy to walk you through it.

In real estate, first impressions matter, and nothing sets the tone for potential buyers like great curb appeal. As the weather warms up, May is the perfect time to enhance your home’s exterior and make it as inviting as possible. Whether you're getting ready to sell or simply want to refresh your property, small improvements to your home’s exterior can make a big impact.

Here are three actionable tips to boost your curb appeal this May:

1. Tidy Up Your Landscaping

A well-maintained yard signals a well-cared-for home.

• Trim overgrown bushes, pull weeds, and mow the lawn regularly.

• Add pops of color with seasonal flowers or planters near your entryway.

• Spread fresh mulch in garden beds to create a polished look.

2. Upgrade Your Front Door

Your front door is the focal point of your home’s exterior.

• Give it a fresh coat of paint in a welcoming color that complements your home’s style.

• Replace outdated hardware like doorknobs and house numbers for a modern touch.

• Add a stylish wreath or door decoration to make it stand out.

3. Clean and Repair Exterior Features

Small details make a big difference to buyers.

• Power wash your driveway, walkway, siding, and deck to remove dirt and grime.

• Repair any cracked or chipped paint, loose shingles, or broken gutters.

• Update exterior lighting with energy-efficient fixtures for a welcoming glow.

By focusing on curb appeal, you’ll create a lasting positive impression and set the stage for a successful showing. Ready to showcase your home’s potential this spring? Let’s connect—I’d love to help you highlight everything your home has to offer!

The Canadian government has extended the foreign buyer ban on residential properties until January 1, 2027.

This extension, announced in February 2024, aims to address housing affordability concerns and make homes more accessible to Canadian citizens and permanent residents.

As a realtor in the Cowichan Valley, it's crucial to understand how this ban affects our local real estate market and what it means for potential buyers and sellers.

Understanding the Ban

The Prohibition on the Purchase of Residential Property by Non-Canadians Act prohibits non-Canadians from purchasing residential properties in Canada's major population centers.

This includes single-family homes, condominiums, and other types of housing intended for personal occupancy.

The ban applies to Census Metropolitan Areas (CMAs) and Census Agglomerations (CAs), which includes much of the Cowichan Valley.

Impact on the Cowichan Valley Real Estate Market

While the foreign buyer ban has garnered significant attention, its actual effect on housing affordability in the Cowichan Valley remains debatable.

Recent data from BC Assessment shows that property values in the region have remained relatively stable, with minimal changes in most areas for 2025. 

For Canadian citizens and permanent residents looking to buy in the Cowichan Valley, the extension of the ban may potentially reduce competition from foreign investors.

However, it's important to note that foreign buyers historically represented a small percentage of overall transactions in many areas. 

Sellers should be aware that while the ban might limit the pool of potential buyers, the Cowichan Valley continues to attract domestic buyers drawn to its natural beauty, quality of life, and relative affordability compared to larger urban centers.

Exceptions and Compliance

It's crucial for both buyers and real estate professionals to understand the exceptions to the ban. These include:

 Temporary residents with valid work permits

International students meeting specific criteria

Refugee claimants

As a realtor, ensuring compliance with the ban is essential.

A non-Canadian purchasing residential property could result in fines of up to $10,000.

Looking Ahead

While the foreign buyer ban aims to address housing affordability, experts suggest that increasing housing supply remains crucial for long-term affordability.

The Cowichan Valley continues to see development in areas like Berkey's Corner, Maple Bay, and South End Duncan, offering opportunities for both buyers and investors.

As your local real estate expert, I'm here to help you navigate these changes and find the best opportunities in our evolving market.

Whether you're looking to buy, sell, or invest in the Cowichan Valley, staying informed about market trends and regulations is key to making sound real estate decisions.