A home loan deposit is made up of your genuine savings and is your initial contribution to the purchase price of a property. This is paid to the vendor/real estate agent as part of signing a contract of sale and serves as a part payment before settlement takes place. 

Since lenders are providing the remaining purchase price, by putting in a deposit, it gives you a stake in the property and reduces the lender’s risk. Many lenders require you to have up to 20% of the purchase price but some will accept lower deposits but you may have to pay Lenders Mortgage Insurance.