It might not seem very important when compared to the price and other conditions such as finance or building and pest inspections, but the Deposit can have more impact than you would think on the success of your offer in purchasing a home.
In assessing the deposit there are really only 2 factors to keep in mind – the amount, and the timing of payment.
In regards to the amount, there really is no minimum deposit you can have on a contract. I have seen plenty come through with as little as $1000 upfront, and if you wanted to be cheeky you could probably try for $1 (though you are unlikely to be taken seriously, so do it at your risk). At the other end, a deposit can be no more than 10% of the purchase price. Any higher and it changes the nature of the contract and can impact on the seller’s rights – which aren’t really going to be in their favour to accept. Somewhere 5% or better tends to be the sweet spot for assuring a seller of your capacity without tying up too much cash. Whatever you agree on though, make sure that’s the amount paid!
With when, it all depends on the wording of the contract. Sometimes it can be due at the time a buyer submits their offer, though generally its paid on acceptance or in a short period thereafter. It can be paid in a single go, or otherwise a smaller initial deposit with a balance deposit paid at a later date – such as on finance approval. Time is essential though - failure to pay in the right amount by the right time provides the seller with a rare opportunity to terminate (and a chance for your competition to come in over the top) so don’t leave that window open.
On a different but important note: plenty has been said already about the Reserve Bank of Australia’s (RBA) decision to increase interest rates yet again this week, not much of it positive. Their reasoning (excuses) are wearing pretty thin at this point and the impact of these cumulative increases is doing far more to quash household budgets than inflation. You don’t necessarily have to take it lying down though. Your bank will absolutely pass that increase on by default, but if you have increased equity (or options of refinancing) you may be able to negotiate a better rate to wind back the clock a little. Its not a solution for everyone, but it’s a phone call (or email) worth making.