Pre-Construction Deposit Structures in Ontario — Complete Guide

How Pre-Construction Deposits Work

One of the most common questions from pre-construction buyers is: "How much do I need upfront?" The answer is that deposits are paid in installments over time — usually 15–20% total, spread across 12–36 months. This is one of the key advantages of pre-construction over resale: you don't need the full down payment immediately.

Typical Condo Deposit Structure

Here is the most common deposit schedule for a pre-construction condo in Ontario in 2026:

On a $600,000 condo, 15% = $90,000 in deposits, paid in five installments over 12 months. The remaining 85% ($510,000) is paid at final closing through your mortgage.

Townhome and Detached Deposit Structures

Freehold townhomes and detached homes typically have slightly different deposit schedules, often higher totals (15–20%) with larger early installments. Here is a typical structure for a $800,000 townhome:

Are Your Deposits Protected?

Yes — Ontario law requires pre-construction deposits to be held in trust and protected under Tarion's deposit protection program. If a builder becomes insolvent or cancels the project, Tarion protects deposits up to a maximum of:

• ✓Condos: Up to $20,000 per suite under basic Tarion protection (additional private insurance may apply)
• ✓Freehold homes: Up to $60,000 under Tarion deposit protection

The 10-Day Cooling-Off Period

Under Ontario law, you have 10 calendar days after signing the Agreement of Purchase and Sale to rescind the contract and receive your deposit back in full — no questions asked. This cooling-off period exists to give buyers time to review with their lawyer, confirm financing, and make sure they're comfortable. Always use this time: have your lawyer review the APS before the 10 days expire.

What Deposits Do and Don't Cover

Your deposits go toward your down payment at closing — they are not fees or costs. The full deposit amount is credited against the purchase price at final closing. You do not earn interest on deposits held in trust (unlike some other jurisdictions).

Deposits do not cover closing costs (land transfer tax, legal fees, development charge adjustments) — those are separate out-of-pocket costs due at closing. See our Closing Costs Guide for the full breakdown.

Builder Delays and Your Rights

Pre-construction occupancy dates are estimates. Ontario's Consumer Protection Act gives builders the right to delay occupancy up to certain limits without penalty. If a builder delays beyond the permitted extension (typically 120–365 days depending on circumstances), buyers may have the right to terminate the agreement and receive their deposits back. Your lawyer should review the delay provisions in your specific APS.