Okuzeka
Real Estate vocabulary · Mortgages & Financing

Down payment

Meaning in real estate, with examples

/ˌdaʊn ˈpeɪmənt/nounCore term

In real estate, down payment means: The part of the purchase price a buyer pays with their own money at the start, while the rest is usually covered by a mortgage.

In Turkish: peşinat, ön ödeme

How it is used

Usually given as a percentage: a 10% or 20% down payment. Buyers save for, put down or make a down payment, and a larger one often means better loan terms. British English usually calls it the deposit.

Example sentences

  1. They're saving for a down payment on a two-bedroom flat.

  2. With a 25% down payment, you'll need a smaller loan.

Common collocations

  • make a down payment
  • save for a down payment
  • put down 20%
  • minimum down payment
  • mortgageA long-term loan used to buy a property, in which the property itself serves as security for the lender until the loan is paid back.
  • loan-to-value ratioThe size of a mortgage compared with the value of the property, shown as a percentage. A 200,000 loan on a 250,000 home is an 80% ratio.
  • earnest moneyA deposit a buyer pays soon after an offer is accepted to show they are serious. It is usually held by a third party and counted toward the price at closing.
  • lenderA bank or other financial company that lends money, especially one that provides mortgages to home buyers.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Mortgages & Financing

Practise with graded reading

Reading at the right level is the fastest way to make new words stick. Pick free English books by level: