Extended deposit structures at VIP launch let some buyers commit for as little as 5% upfront. Here's how the low-deposit pre-construction strategy works — and where to find it.
One of the most common questions our team receives is: "I don't have 15% saved yet — can I still buy pre-construction?" The answer is often yes — because pre-construction deposits are paid in installments, and at VIP launch events, builders frequently offer extended deposit structures that front-load far less than the standard schedule. Here is how the low-deposit strategy works, where it's available, and what you need to plan for.
The "standard" pre-construction deposit structure in Ontario is 15–20% total, typically paid over 12 months. But at platinum VIP launch events, builders often offer extended structures as an incentive to early buyers — spreading the same total deposit over 24–36 months, or reducing the total deposit required to as low as 10% with specific builder incentives.
A common extended VIP structure on a $600,000 condo:
Your largest single payment is $30,000 — the 5% at signing. Over 36 months, the remaining $60,000 is paid in $15,000 chunks. Most buyers can manage $15,000 every 12 months without it being a financial strain.
5% Signing Only
Some VIP builder incentives reduce the signing deposit to 5% with the remaining 10% spread over 2–3 years. This means you need only $25,000–$35,000 in hand on signing day for a $500K–$700K unit. The remaining deposits are paid while you continue working and saving.
For first-time buyers, the FHSA (First Home Savings Account) is perfectly aligned with the pre-construction deposit schedule. You can contribute $8,000 per year per person ($16,000 for a couple), with immediate tax deductions. For a buyer who signs in 2026 with a 2029 closing:
A couple with FHSAs open since 2024 and RRSPs funded can realistically assemble a $100,000+ down payment almost entirely through registered savings — with tax deductions reducing their net cost at every step.
Extended deposit structures are a VIP/platinum incentive — they are not available at public launch and are rarely advertised. They're offered at the builder's discretion to attract early buyers. Markets where builders are most motivated to offer them in 2026:
| City | Condo From | Typical VIP Structure | Why Extended Here |
|---|---|---|---|
| Hamilton | $429,000 | 5% + 5% + 5% over 24 mo | Builders competing for buyers in value market |
| Oshawa | $449,000 | 5% now + 10% over 18 mo | Extended structures attract first-time buyers |
| Barrie | $469,000 | 5% + 5% + 5% over 30 mo | Strong builder incentive packages at launch |
| Kitchener | $449,000 | 5% now + 10% over 24 mo | Tech buyer profile, builders accommodate |
| Brampton | $459,000 | 5% + 5% + 5% over 24 mo | First-time buyer market, competitive launches |
Important: At final closing, you still need a minimum 5% mortgage down payment (total purchase including deposits must equal at least 5% down on sub-$500K, scaling up to 10% on the $500K–$999K portion). Your paid deposits count toward this requirement — but you must ensure the total at closing meets CMHC or conventional lending minimums. Discuss with your mortgage broker before signing.
A 5% upfront deposit commitment on a pre-construction APS is not the same as a 5% mortgage down payment. You are committing to pay 15% in total deposits over the construction period — only the first installment is 5%. The remaining deposits follow. Plan for the full 15% (or whatever the total deposit schedule requires) before signing, even if the first payment is small.
Tell us what matters to you and our team contacts you within 1 hour with pre-construction projects that match — before they go public.
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