Pre-construction deposit structures in Ontario, explained

How pre-construction deposits work

When you buy a pre-construction home or condo in Ontario, you don't pay for the home all at once. You pay a series of deposits over months or years while the project is built, and the balance is paid at final closing through your mortgage.

A typical GTA condo deposit structure totals 15–20% of the purchase price, broken into stages: $5,000–$10,000 with the offer, the balance of 5% in 30 days, then 5% at 90, 180 and sometimes 365–540 days. Low-rise (townhome and detached) structures are often lower in total — frequently 10–15%.

Extended deposit structures

To attract buyers, many developers now offer extended structures — for example 5% spread over 18 months in monthly instalments, or a portion deferred to occupancy. These reduce how much cash you need up front and are one of the most negotiable parts of a pre-construction purchase, especially through a brokerage with platinum or VIP allocation.

Where your deposit is held and how it's protected

For new condos in Ontario, deposits must be held in trust by the developer's lawyer. Tarion protects condo deposits up to $20,000, and the trust requirement covers the rest. For freehold homes, Tarion deposit protection covers up to $100,000 (for homes priced over $600,000).

Always verify the project is registered with Tarion / the HCRA and confirm in the Agreement of Purchase and Sale exactly when each deposit cheque is cashed.

The 10-day cooling-off period

New condo purchases in Ontario come with a mandatory 10-calendar-day cooling-off period. You can cancel for any reason within those 10 days and get your deposit back in full. Use this window to have a real estate lawyer review the agreement and to get mortgage pre-approval. Freehold purchases do not have a statutory cooling-off period, so review terms before signing.