Deposit vs. Down Payment on a House Deposit and down payment–two words that are commonly used and often interchanged. Many first-time buyers get confused about the difference between a down payment vs. deposit when planning their finances for a home purchase. While they’re both upfront costs in the home buying process, the two terms are entirely different. A deposit is money you attach to an offer to show a home seller that you’re interested in buying their property.... [read more]