Resale buyers put down roughly 5 percent. Pre-construction buyers are often asked for three or four times that, paid in instalments over a year or more. Understanding the pre-construction condo deposit structure in Ontario is the first real homework of buying new, because the deposit schedule shapes your cash flow for years before you ever get a key.
How pre-construction deposit structures work in Ontario
A typical GTA structure totals 15 to 20 percent, staged something like this:
$5,000 or so with the signed agreement
Balance to 5 percent in 30 days
5 percent more at 90 to 180 days
5 percent at a later milestone or a set date
Sometimes a final 5 percent at occupancy
Every project is different, and in slower markets builders compete on gentler structures (extended schedules, lower totals, occupancy-weighted payments). The deposit is credited against your purchase price at final closing, the same as resale, it just arrives in slices.
Where the money sits, and how it's protected
Your deposits go to the builder's lawyer or a designated trustee, held in trust under the Condominium Act. For new condos, deposit money is protected by a combination of trust requirements and Tarion coverage for amounts above the trust protections, subject to limits. The practical takeaway: condo deposit protection in Ontario is meaningful but has structure to it, and your lawyer should confirm exactly how your deposits are held and covered before you pass your cooling-off period. Tarion publishes the current coverage details.
Pre-construction is complex. Every project has different terms in the APS. Don't sign anything without your real estate lawyer reviewing it first.
Planning the cash flow
The deposit schedule is a savings plan with deadlines and consequences. Before signing, map every instalment against your actual cash position:
Missing a scheduled deposit is a default with real remedies for the builder, not a courtesy reminder
Post-dated cheques are standard practice, so the schedule executes automatically
Your money is committed for years without earning much, which is part of the true cost of buying new
If you're counting on future income or a gift for later instalments, get certainty before you sign, not after
Questions to ask before you sign
What is the total deposit and the exact schedule?
Who holds the funds, and in what account?
What happens to my deposits if the project is cancelled? (Deposits are returned, but confirm interest terms and timing)
Is there any flexibility in the schedule if the builder wants the deal?
What are the assignment rules if my plans change before closing?
That cancellation question matters more than buyers expect. Projects do get cancelled, and while deposit return is the rule, the opportunity cost of years of tied-up money is not compensated the way people assume.
Common mistakes
Committing to a schedule that only works if nothing in your life changes
Treating the sales-centre worksheet as final before lawyer review of the APS during the cooling-off period
Forgetting that closing costs, adjustments, and possibly HST considerations come later, on top of the deposits
Assuming deposit protection covers unlimited amounts without checking how the coverage actually stacks
If you're weighing a pre-construction purchase and want a second set of eyes on the numbers, reach out. And if you need a real estate lawyer experienced with pre-con, contact me and I can recommend someone.
Details current as of July 2026 and general in nature. Not legal advice. Confirm deposit protection specifics and your project's terms with your lawyer.
