Business Analyst Finance Domain Sample Resume

This is just a sample Business Analyst resume for freshers as well as for experienced job seekers in Finance domain of business analyst or system analyst. While this is only a sample resume, please use this only for reference purpose, do not copy the same client names or job duties for your own purpose. Always make your own resume with genuine experience.

Name: Justin Megha

Ph no: XXXXXXX

your email here.

Business Analyst, Business Systems Analyst

SUMMARY

  • Accomplished in Business Analysis, System Analysis, Quality Analysis and Project Management with extensive experience in business products, operations and Information Technology on the capital markets space specializing in Finance such as Trading, Fixed Income, Equities, Bonds, Derivatives(Swaps, Options, etc) and Mortgage with sound knowledge of broad range of financial instruments.
  • Over 11+ Years of proven track record as value-adding, delivery-loaded project hardened professional with hands-on expertise spanning in System Analysis, Architecting Financial applications, Data warehousing, Data Migrations, Data Processing, ERP applications, SOX Implementation and Process Compliance Projects.
  • Accomplishments in analysis of large-scale business systems, Project Charters, Business Requirement Documents, Business Overview Documents, Authoring Narrative Use Cases, Functional Specifications, and Technical Specifications, data warehousing, reporting and testing plans.
  • Expertise in creating UML based Modelling views like Activity/ Use Case/Data Flow/Business Flow /Navigational Flow/Wire Frame diagrams using Rational Products & MS Visio.
  • Proficient as long time liaison between business and technology with competence in Full Life Cycle of System (SLC) development with Waterfall, Agile, RUP methodology, IT Auditing and SOX Concepts as well as broad cross-functional experiences leveraging multiple frameworks.
  • Extensively worked with the On-site and Off-shore Quality Assurance Groups by assisting the QA team to perform Black Box /GUI testing/ Functionality /Regression /System /Unit/Stress /Performance/ UAT’s.
  • Facilitated change management across entire process from project conceptualization to testing through project delivery, Software Development & Implementation Management in diverse business & technical environments, with demonstrated leadership abilities.

EDUCATION

  • Post Graduate Diploma (in Business Administration), USA
  • Master’s Degree (in Computer Applications),
  • Bachelor’s Degree (in Commerce),

TECHNICAL SKILLS

Documentation Tools UML, MS Office (Word, Excel, Power Point, Project), MS Visio, Erwin

SDLC Methodologies Waterfall, Iterative, Rational Unified Process (RUP), Spiral, Agile

Modeling Tools UML, MS Visio, Erwin, Power Designer, Metastrom Provision

Reporting Tools Business Objects X IR2, Crystal Reports, MS Office Suite

QA Tools Quality Center, Test Director, Win Runner, Load Runner, QTP, Rational Requisite Pro, Bugzilla, Clear Quest

Languages Java, VB, SQL, HTML, XML, UML, ASP, JSP

Databases & OS MS SQL Server, Oracle 10g, DB2, MS Access on Windows XP / 2000, Unix

Version Control Rational Clear Case, Visual Source Safe

PROFESSIONAL EXPERIENCE

SERVICE MASTER, Memphis, TN June 08 – Till Date

Senior Business Analyst

Terminix has approximately 800 customer service agents that reside in our branches in addition to approximately 150 agents in a centralized call center in Memphis, TN. Terminix customer service agents receive approximately 25 million calls from customers each year. Many of these customer’s questions are not answered or their problems are not resolved on the first call. Currently these agents use an AS/400 based custom developed system called Mission to answer customer inquiries into branches and the Customer Communication Center. Mission – Terminix’s operation system – provides functionality for sales, field service (routing & scheduling, work order management), accounts receivable, and payroll. This system is designed modularly and is difficult to navigate for customer service agents needing to assist the customer quickly and knowledgeably. The amount of effort and time needed to train a customer service representative using the Mission system is high. This combined with low agent and customer retention is costly.

Customer Service Console enables Customer Service Associates to provide consistent, enhanced service experience, support to the Customers across the Organization. CSC is aimed at providing easy navigation, easy learning process, reduced call time and first call resolution.

Responsibilities

  • Assisted in creating Project Plan, Road Map. Designed Requirements Planning and Management document.
  • Performed Enterprise Analysis and actively participated in buying Tool Licenses.
  • Identified subject-matter experts and drove the requirements gathering process through approval of the documents that convey their needs to management, developers, and quality assurance team.
  • Performed technical project consultation, initiation, collection and documentation of client business and functional requirements, solution alternatives, functional design, testing and implementation support.
  • Requirements Elicitation, Analysis, Communication, and Validation according to Six Sigma Standards.
  • Captured Business Process Flows and Reengineered Process to achieve maximum outputs.
  • Captured As-Is Process, designed TO-BE Process and performed Gap Analysis
  • Developed and updated functional use cases and conducted business process modeling (PROVISION) to explain business requirements to development and QA teams.
  • Created Business Requirements Documents, Functional and Software Requirements Specification Documents.
  • Performed Requirements Elicitation through Use Cases, one to one meetings, Affinity Exercises, SIPOC’s.
  • Gathered and documented Use Cases, Business Rules, created and maintained Requirements/Test Traceability Matrices.

Client: The Dun & Bradstreet Corporation, Parsippany, NJ May’ 2007 – Oct’ 2007

Profile: Sr. Financial Business Analyst/ Systems Analyst.

Project Profile (1): D&B is the world’s leading source of commercial information and insight on businesses. The Point of Arrival Project and the Data Maintenance (DM) Project are the future applications of the company that the company would transit into, providing an effective method & efficient report generation system for D&B’s clients to be able purchase reports about companies they are trying to do business.

Project Profile (2): The overall purpose of this project was building a Self Awareness System(SAS) for the business community for buying SAS products and a Payment system was built for SAS. The system would provide certain combination of products (reports) for Self Monitoring report as a foundation for managing a company’s credit.

Responsibilities:

  • Conducted GAP Analysis and documented the current state and future state, after understanding the Vision from the Business Group and the Technology Group.
  • Conducted interviews with Process Owners, Administrators and Functional Heads to gather audit-related information and facilitated meetings to explain the impacts and effects of SOX compliance.
  • Played an active and lead role in gathering, analyzing and documenting the Business Requirements, the business rules and Technical Requirements from the Business Group and the Technological Group.
  • Co – Authored and prepared Graphical depictions of Narrative Use Cases, created UML Models such as Use Case Diagrams, Activity Diagrams and Flow Diagrams using MS Visio throughout the Agile methodology
  • Documented the Business Requirement Document to get a better understanding of client’s business processes of both the projects using the Agile methodology.
  • Facilitating JRP and JAD sessions, brain storming sessions with the Business Group and the Technology Group.
  • Documented the Requirement traceability matrix (RTM) and conducted UML Modelling such as creating Activity Diagrams, Flow Diagrams using MS Visio. Analysed test data to detect significant findings and recommended corrective measures
  • Co-Managed the Change Control process for the entire project as a whole by facilitating group meetings, one-on-one interview sessions and email correspondence with work stream owners to discuss the impact of Change Request on the project.
  • Worked with the Project Lead in setting realistic project expectations and in evaluating the impact of changes on the organization and plans accordingly and conducted project related presentations.
  • Co-oordinated with the off shore QA Team members to explain and develop the Test Plans, Test cases, Test and Evaluation strategy and methods for unit testing, functional testing and usability testing

Environment: Windows XP/2000, SOX, Sharepoint, SQL, MS Visio, Oracle, MS Office Suite, Mercury ITG, Mercury Quality Center, XML, XHTML, Java, J2EE.

GATEWAY COMPUTERS, Irvine, CA, Jan 06 – Mar 07

Business Analyst

At Gateway, a Leading Computer, Laptop and Accessory Manufacturer, was involved in two projects,

Order Capture Application: Objective of this Project is to Develop Various Mediums of Sales with a Centralized Catalog. This project involves wide exposure towards Requirement Analysis, Creating, Executing and Maintaining of Test plans and Test Cases. Mentored and trained staff about Tech Guide & Company Standards; Gateway reporting system: was developed with Business Objects running against Oracle data warehouse with Sales, Inventory, and HR Data Marts. This DW serves the different needs of Sales Personnel and Management. Involved in the development of it utilized Full Client reports and Web Intelligence to deliver analytics to the Contract Administration group and Pricing groups. Reporting data mart included Wholesaler Sales, Contract Sales and Rebates data.

Responsibilities:

  • Product Manager for Enterprise Level Order Entry Systems – Phone, B2B, Gateway.com and Cataloging System.
  • Modeled the Sales Order Entry process to eliminate bottleneck process steps using ERWIN.
  • Adhered and practiced RUP for implementing software development life cycle.
  • Gathered Requirements from different sources like Stakeholders, Documentation, Corporate Goals, Existing Systems, and Subject Matter Experts by conducting Workshops, Interviews, Use Cases, Prototypes, Reading Documents, Market Analysis, Observations
  • Created Functional Requirement Specification documents – which include UMLUse case diagrams, Scenarios, activity, work Flow diagrams and data mapping. Process and Data modeling with MS VISIO.
  • Worked with Technical Team to create Business Services (Web Services) that Application could leverage using SOA, to create System Architecture and CDM for common order platform.
  • Designed Payment Authorization (Credit Card, Net Terms, and Pay Pal) for the transaction/order entry systems.
  • Implemented A/B Testing, Customer Feedback Functionality to Gateway.com
  • Worked with the DW, ETL teams to create Order entry systems Business Objects reports. (Full Client, Web I)
  • Worked in a cross functional team of Business, Architects and Developers to implement new features.
  • Program Managed Enterprise Order Entry Systems – Development and Deployment Schedule.
  • Developed and maintained User Manuals, Application Documentation Manual, on Share Point tool.
  • Created Test Plansand Test Strategies to define the Objective and Approach of testing.
  • Used Quality Center to track and report system defects and bug fixes. Written modification requests for the bugs in the application and helped developers to track and resolve the problems.
  • Developed and Executed Manual, Automated Functional, GUI, Regression, UAT Test cases using QTP.
  • Gathered, documented and executed Requirements-based, Business process (workflow/user scenario), Data driven test cases for User Acceptance Testing.
  • Created Test Matrix, Used Quality Center for Test Management, track & report system defects and bug fixes.
  • Performed Load, stress Testing’s & Analyzed Performance, Response Times. Designed approach, developed visual scripts in order to test client & server side performance under various conditions to identify bottlenecks.
  • Created / developed SQL Queries (TOAD) with several parameters for Backend/DB testing
  • Conducted meetings for project status, issue identification, and parent task review, Progress Reporting.

AMC MORTGAGE SERVICES, CA, USA Oct 04 – Dec 05

Business Analyst

The primary objective of this project is to replace the existing Internal Facing Client / Server Applications with a Web enabled Application System, which can be used across all the Business Channels. This project involves wide exposure towards Requirement Analysis, Creating, Executing and Maintaining of Test plans and Test Cases. Demands understanding and testing of Data Warehouse and Data Marts, thorough knowledge of ETL and Reporting, Enhancement of the Legacy System covered all of the business requirements related to Valuations from maintaining the panel of appraisers to ordering, receiving, and reviewing the valuations.

Responsibilities:

  • Gathered Analyzed, Validated, and Managed and documented the stated Requirements. Interacted with users for verifying requirements, managing change control process, updating existing documentation.
  • Created Functional Requirement Specification documents – that include UML Use case diagrams, scenarios, activity diagrams and data mapping. Provided End User Consulting on Functionality and Business Process.
  • Acted as a client liaison to review priorities and manage the overall client queue. Provided consultation services to clients, technicians and internal departments on basic to intricate functions of the applications.
  • Identified business directions & objectives that may influence the required data and application architectures.
  • Defined, prioritized business requirements, Determine which business subject areas provide the most needed information; prioritize and sequence implementation projects accordingly.
  • Provide relevant test scenarios for the testing team. Work with test team to develop system integration test scripts and ensure the testing results correspond to the business expectations.
  • Used Test Director, QTP, Load Runner for Test management, Functional, GUI, Performance, Stress Testing
  • Perform Data Validation, Data Integration and Backend/DB testing using SQL Queries manually.
  • Created Test input requirements and prepared the test data for data driven testing.
  • Mentored, trained staff about Tech Guide & Company Standards. Set-up and Coordinate Onsite offshore teams, Conduct Knowledge Transfer sessions to the offshore team.

Lloyds Bank, UK Aug 03 – Sept 04

Business Analyst

Lloyds TSB is leader in Business, Personal and Corporate Banking. Noted financial provider for millions of customers with the financial resources to meet and manage their credit needs and to achieve their financial goals. The Project involves an applicant Information System, Loan Appraisal and Loan Sanction, Legal, Disbursements, Accounts, MIS and Report Modules of a Housing Finance System and Enhancements for their Internet Banking.

Responsibilities:

  • Translated stakeholder requirements into various documentation deliverables such as functional specifications, use cases, workflow / process diagrams, data flow / data model diagrams.
  • Produced functional specifications and led weekly meetings with developers and business units to discuss outstanding technical issues and deadlines that had to be met.
  • Coordinated project activities between clients and internal groups and information technology, including project portfolio management and project pipeline planning.
  • Provided functional expertise to developers during the technical design and construction phases of the project.
    • Documented and analyzed business workflows and processes. Present the studies to the client for approval
    • Participated in Universe development – planning, designing, Building, distribution, and maintenance phases.
    • Designed and developed Universes by defining Joins, Cardinalities between the tables.
      • Created UML use case, activity diagrams for the interaction between report analyst and the reporting systems.
      • Successfully implemented BPR and achieved improved Performance, Reduced Time and Cost.
      • Developed test plans and scripts; performed client testing for routine to complex processes to ensure proper system functioning.
      • Worked closely with UAT Testers and End Users during system validation, User Acceptance Testing to expose functionality/business logic problems that unit testing and system testing have missed out.
        • Participated in Integration, System, Regression, Performance, and UAT – Using TD, WR, Load Runner
        • Participated in defect review meetings with the team members. Worked closely with the project manager to record, track, prioritize and close bugs. Used CVS to maintain versions between various stages of SDLC.

Client: A.G. Edwards, St. Louis, MO May’ 2005 – Feb’ 2006

Profile: Sr. Business Analyst/System Analyst

Project Profile: A.G. Edwards is a full service Trading based brokerage firm in Internet-based futures, options and forex brokerage. This site allows Users (Financial Representative) to trade online. The main features of this site were: Users can open new account online to trade equitiies, bonds, derivatives and forex with the Trading system using DTCC’s applications as a Clearing House agent. The user will get real-time streaming quotes for the currency pairs they selected, their current position in the forex market, summary of work orders, payments and current money balances, P & L Accounts and available trading power, all continuously updating in real time via live quotes. The site also facilitates users to Place, Change and Cancel an Entry Order, Placing a Market Order, Place/Modify/Delete/Close a Stop Loss Limit on an Open Position.

Responsibilities:

  • Gathered Business requirements pertaining to Trading, equities and Fixed Incomes like bonds, converted the same into functional requirements by implementing the RUP methodology and authored the same in Business Requirement Document (BRD).
  • Designed and developed all Narrative Use Cases and conducted UML modeling like created Use Case Diagrams, Process Flow Diagrams and Activity Diagrams using MS Visio.
  • Implemented the entire Rational Unified Process (RUP) methodology of application development with its various workflows, artifacts and activities. Developed business process models in RUP to document existing and future business processes. Established a business Analysis methodology around the Rational Unified Process.
  • Analyzed user requirements, attended Change Request meetings to document changes and implemented procedures to test changes.
  • Assisted in developing project timelines/deliverables/strategies for effective project management.
  • Evaluated existing practices of storing and handling important financial data for compliance.
  • Involved in developing the test strategy and assisted in developed Test scenarios, test conditions and test cases
  • Partnered with the technical areas in the research, resolution of system and User Acceptance Testing (UAT).

Environment: Windows XP/2000/NT, SOX, MS Office Suite, SQL, MS SQL Server, XML, HTML, Java, J2EE, JSP, Oracle, WinRunner, Test Director

6 Tips For An Affordable Home Renovation

Your home is one of the biggest investments you’ll ever have. And just like any investment it is important that you take care of your house by doing the necessary repairs, regular maintenance and most of all keeping the house design up to date. By doing so, the value of your home will significantly increase. However, due to today’s economic problems, a home renovation project may not be on top of your to-do list at this time.

But what if I tell you that there are ways on how you can save a lot of money on home remodeling? Yes, you can remodel your home at a price you can afford. All you need to do is strategically plan your materials, design and timing for your home remodelling project. You will see that it is actually not so hard to cut costs without compromising the quality of the project. Here are some tips on how to remodel your home without blowing up your budget.

1. Efficiency matters, not size. Reorganizing your home, bathroom or kitchen for maximum utility doesn’t necessarily require building or creating more space. You can do this by using shelves with concealed cabinets or pullout drawers. This can be very useful especially in the kitchen, where careful planning to get additional space pays off by not needing to extend the cabinetry into the other rooms.

2. Let there be light. You can let in more natural light into your house without building additional windows and doors. Before smashing your walls for more windows or bifold doors, why not think of less expensive and less invasive ways of having more light. For example, you can make a windowless hallway brighter by installing a solar tube skylight which could be more affordable than putting up a new window.

3. Do-it-yourself demolition. If you are planning to start a home renovation project on a tight budget, you can begin by being your own demolition team. Even though knocking down a part of your home may not be as expensive as rebuilding it, you can still save a few dollars by doing some of the demolition work yourself. Just be careful and take extra precautions. Don’t forget to salvage reusable building and slightly used fixtures. If you have more time to spare, you can also try some of the finishing work yourself such as painting, sanding, installing the insulation and rubbish removal.

4. Consider long-term expenses. Purchasing pre-finished materials may be costly upfront but it allows you to save cash on extensive paint or finishing jobs. For example, you can get primed and painted weatherboard, skirting, decking boards and even prefabricated wall finishes. These items usually cost more upfront but they will also help you save some valuable time and money by preventing costly paint jobs.

5. It’s all about the timing. Renovation jobs can be costly especially if you’re doing it on peak season. Contractors usually double their charges if they are highly in-demand. So, you might want to create a timetable on when to efficiently start your renovation project. This way, you will have more bargaining power with the contractor and it is likely that you will get a fair deal for your remodelling project. It is also important to get price quotes from more than one contractor.

6. Go out and buy your own remodeling materials. Remodeling materials are normally expensive. Furthermore, there are some contractors who add a little price commission on the building materials that they buy in your behalf, thus, making the process even more expensive. This is why it would be better if you buy them yourself instead of handing over that task to the contractor to make sure that you are getting exactly what you are paying for. This also allows you to monitor every penny you shell out on your renovation project.

Wireless Networking, Part 1: Capabilities and Hardware

Wireless Networking, Part 1: Capabilities and Hardware

These days it isn’t uncommon for a home to have multiple personal computers, and as such, it just makes sense for them to be able to share files, as well as to share one Internet connection. Wired networking is an option, but it is one that may require the installation and management of a great deal of wiring in order to get even a modestly sized home set up. With wireless networking equipment becoming extremely affordable and easy to install, it may be worth considering by those looking to build a home network, as well as by those looking to expand on an existing wired network.

The first installment in this two-part series of Tech Tips will provide an introduction to the basic capabilities and hardware involved in wireless networking. Once that foundation has been established, we’ll take a look at a few setup and security related considerations that should be addressed once the physical installation is complete.

Capabilities

The basic standard that covers wireless networking is the Institute for Electrical and Electronics Engineers’ (IEEE) 802.11, which is close kin to the wired Ethernet standard, 802.3. Many people will recognize 802.11 more readily when accompanied by one of three suffixes (a, b, or g), used to specify the exact protocol of wireless networking.

The 802.11a protocol first hit the scene in 2001, and despite a small surge in recent popularity, it is definitely the least common of the three at this time. The signals are transmitted on a 5 GHz radio frequency, while “b” and “g” travel on 2.4 GHz. The higher frequency means that the signal can travel less distance in free space and has a harder time penetrating walls, thus making the practical application of an 802.11a network a bit limited. The maximum transfer rate, however, is roughly 54 Mbps, so it makes up for its limited range with respectable speed.

As mentioned, 802.11b and 802.11g networks operate on a 2.4 GHz radio band, which gives a much greater range as compared to 802.11a. One downside to being on the 2.4 GHz band is that many devices share it, and interference is bound to be an issue. Cordless phones and Bluetooth devices are two of many items that operate at this frequency. The range of these two protocols is about 300 feet in free air, and the difference between the two comes down to speed. 802.11b came first, released back in 1999, and offers speeds up to 11 Mbps. 802.11g first appeared in 2002 and it is a backwards compatible improvement over 802.11b and offers speeds up to 54 Mbps.

On top of these protocols, some manufacturers have improved upon the 802.11g standard and can provide speeds of up to 108 Mbps. This doesn’t involve a separate protocol, but just a bit of tweaking in areas like better data compression, more efficient data packet bursting, and by using two radio channels simultaneously. Typically, stock 802.11g equipment is not capable of these speeds, and those interested need to shop for matched components that specify 108 Mbps support. I say “matched components” as this is not a standard protocol and the various manufacturers may take different approaches to achieving these speeds. In order to ensure the best results when trying to achieve these elevated speeds, components from the same manufacturer should be used together. For instance, only Netgear brand network adaptors rated for 108 Mbps data transfer should be used with something like the Netgear WG624 wireless router (http://www.geeks.com/details.asp?invtid=WGT624NAR).

Considering your typical broadband Internet connection is going to offer data transfer rates of 10 Mbps or less, it can be seen that even 802.11b would be more than adequate if you just want to surf the web. Sharing files on your LAN (Local Area Network) is where the faster protocols will really make a difference, and comparing the prices of 802.11b and 802.11g components may show that there is little to no difference in selecting a “g” capable device over a comparable “b” capable device.

Hardware

Access Point – Wireless Access Point (WAP) is the central device that manages the transmission of wireless signals on a network. A base access point may be capable of handling up to 10 connections, and more robust APs may be able to manage up to 255 connections simultaneously. The D-Link DWL-1000AP+ (http://www.dlink.com/products/?pid=37) is an example of a wireless access point capable of 802.11b transmissions.

Router – In somewhat technical terms, a router is a network device that forwards data packets. It is generally the connection between at least two networks, such as two LANs, or a LAN and ISP’s (Internet Service Provider’s) network. For our purposes, and for the sake of simplicity, a wireless router is basically an access point with the added feature of having a port for sharing a broadband Internet connection. The D-Link AirPlus G (http://www.geeks.com/details.asp?invtid=DI524-R&cat=NET) is an 802.11g capable router that provides access for numerous wireless connections and four hard-wired connections to one WAN (Wide Area Network Internet) connection. A typical router for home use will generally cost less than an access point, and via settings within the firmware, can be used as just an access point anyway. Wired or wireless, all the computers using the router can share files over the network, as well as sharing a broadband internet connection. Communication between wireless computers (or a wireless computer and a wired computer) will max out at 54 Mbps, while communication between wired computers will take full advantage of the 100 Mbps provided via the 802.3 protocol.

Network Adaptor – A network adaptor is required for every computer that you would like to be connected to the wireless network. Many laptops, such as this Sony Centrino 1.5 GHz (http://www.geeks.com/details.asp?invtid=PCGZ1RA-R&cat=NBB) now include a wireless adaptor built in, so no extra hardware is needed. For those with systems that don’t have wireless capabilities built in, adding them is fairly simple, and can be done using a variety of connections. Desktop computers can go wireless by adding a PCI slot network adaptor such as the 802.11g capable D-Link DWL-G510 (http://www.dlink.com/products/?pid=308). Notebook users can easily add wireless connectivity by using a PCMCIA adaptor, such as this 802.11g capable device (http://www.geeks.com/details.asp?invtid=PBW006-N&cat=NET). And for truly convenient plug-n-play connectivity to wireless networks, USB adaptors such as this 802.11g capable dongle (http://www.geeks.com/details.asp?invtid=80211GWUD&cat=NET) are available.

Antenna/Extender – These items are not essential, but given the specifics of a wireless environment, they may be helpful. Devices such as the Hawking Hi-Gain Antenna (http://www.geeks.com/details.asp?invtid=HAI6SIP-N&cat=NET) or the Super Cantenna (http://www.geeks.com/details.asp?invtid=SCB10&cat=NET) serve the purpose of increasing the wireless signal strength, and therefore extend the range of a given wireless network. Not only can a large area of open space be covered, but the signal quality may be improved in structures with walls and floors that obstruct the signal transmission.

Final Words

In this Tech Tip, we took a look at the basics of wireless networking as it relates to capabilities and hardware. In the second part of this two-part series, we will look at some of the basic setup and security considerations that should be addressed. The physical installation of a wireless network may be exponentially easier than a wired network, but the more difficult part is setting up the software and security to make sure everything stays up and running without incident.

Real Estate Deposit vs Down Payment

When you’re selling your home, you have to be familiar with related real-estate lingo. You have to know the difference between a canopy and an awning; a mortgage and a loan; and most importantly, the difference between a deposit and a down payment.

Believe it or not, there are a lot of home sellers who think that deposits and down payments are one and the same, when in reality they are not.

A deposit is the money given or handed over to the owner when a buyer indicates a sincere desire to purchase the property being sold. It is a token amount that could be as small as a few hundred dollars, or as big as 5% of the total purchase price. The deposit can be returned when the transaction does not fall through for reasons beyond the control of the buyer, and can also be forfeited in favour of the seller. When the purchase pushes through, the deposit is credited to the buyer and forms part of his down payment.

A down payment or equity, on the other hand, can be considered as an initial payment on the property itself. It is given when the buyer has decided to actually purchase the house (unlike in deposit, where it is given when the buyer indicates a desire to buy the unit). The down payment is the total amount of money a buyer can give as a partial payment and is generally of a bigger value (10% of the total property cost, or more) than regular deposits.

It’s fairly easy to differentiate. Just remember that a deposit is smaller and, once the transaction pushes through, becomes part of the down payment. The total of these two, plus any outstanding balance, should be the agreed upon purchase price of the property.