Business, Legal & Accounting Glossary

Definition: Downpayment

Full Definition of Downpayment

The downpayment is equity offered with a sales contract to secure a deal. In some cases, it may be earnest money, but in larger deals such as real estate, a separate earnest money payment secures the deal in the approval stages while the downpayment is paid later, if not at the close.

In a real estate transaction, the downpayment determines the size of the mortgage. A larger downpayment suggests a buyer who is more likely to get his loan approved.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Downpayment. Payroll & Accounting Heaven Ltd. September 20, 2021
Chicago Manual of Style (CMS):
Downpayment. Payroll & Accounting Heaven Ltd. (accessed: September 20, 2021).
American Psychological Association (APA):
Downpayment. Retrieved September 20, 2021, from website:

Definition Sources

Definitions for Downpayment are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 5th August, 2021 | 0 Views.