A mortgage deposit is the amount of money you’re prepared to pay upfront towards the sale of a property. Unlike how most deposits work, this isn’t money that you will lose. It is simply a commitment to pay an agreed percentage of the purchase upfront in order to secure a mortgage. Most mortgages come with a deposit, usually starting from 5%.
Meanwhile, your exchange deposit is an amount of money that your property lawyer transfers to your seller’s conveyancer when you exchange contracts on the sale. If you back out of the purchase after the deposit money has been exchanged, you will lose that money.