Deposits & financing
What is a typical deposit structure for pre-construction in Ontario?
New low-rise in the GTA typically requires 10% to 20% of the price, paid in instalments over 12 to 24 months. A common structure is a bank draft on signing, then further amounts at 30, 90, 180 and 365 days. Freehold deposits are often lower than condo deposits.
Deposit structures vary by builder and by how well a release is selling, but the shape is consistent.
A common low-rise structure
On a freehold home around $1,000,000, you might see:
| When | Amount |
|---|---|
| On signing | $25,000 – $50,000 |
| 30 days | $25,000 |
| 90 days | $25,000 |
| 180 days | $25,000 |
| 365 days | balance to 10% |
Total: 10% of the purchase price, spread across a year. Some builders ask for 15% or 20%, particularly on higher-priced homes or from buyers who are not residents of Canada.
The first cheque is usually required on signing, bank draft or certified cheque, at the sales centre. Not a wire next week. Have it ready before you go, because releases are timed and a signature without a draft is not a purchase.
Freehold versus condo
Freehold deposit requirements are often lighter than condo. A pre-construction condo commonly asks 15% to 20% over a longer schedule, partly because the closing is further out and the builder’s financing requires a deeper sales base.
Why the dates are not suggestions
Each date in that table is a contractual obligation. Missing a deposit instalment is a default, and the consequences in the agreement can include termination and forfeiture. If a date is going to be difficult, the conversation happens with your lawyer in advance, not by letting a cheque bounce.
This is the most common way a buyer gets into trouble in year one: the signing draft was affordable, and the cumulative schedule was not.
What to work out before you sign
- The full schedule in dollars and dates, written down.
- Where each instalment actually comes from. Money you hold, not money you expect from a sale, a bonus or a gift that has not been confirmed.
- Whether your deposit exceeds Tarion’s protection limit, on freehold, protection caps at 10% of price up to $100,000, so a 20% deposit on a $1.2M home leaves a large uninsured balance.
- What else is due at closing beyond the deposit, land transfer tax, levies and adjustments commonly add tens of thousands.
Negotiating it
Deposit structure is one of the more negotiable terms, especially mid-phase or on slower inventory. Builders would rather adjust timing than price. If the total is affordable but the schedule is tight, ask, an extra 90 days on the third instalment costs the builder little and may matter a lot to you.
Let’s map your deposit schedule against what you actually have.
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