Deposits: the cash question that decides whether you can buy at all
Deposit schedules, what they look like on real dates, how much cash lands in the first twelve months, and how deposits are protected.
2026-09-02 · eXp Realty, Brokerage
A pre-construction agreement asks for money in a pattern nothing else in your financial life does: a cheque on signing, another in 30 days, another at 90, another at a year, another at 540 days, and then a large balance on closing that your mortgage covers. Two homes at the same price with different schedules can need $40,000 more cash in year one from one buyer than the other. That difference decides who can buy.
A typical structure
For a freehold detached home in the GTA the pattern is often something like $10,000 with the offer, then instalments to reach 15–20% of price within 18–24 months. On a $1,050,000 home:
| When | Amount | Running total |
|---|---|---|
| With offer | $10,000 | $10,000 |
| 30 days | $42,500 | $52,500 |
| 120 days | $52,500 | $105,000 |
| 365 days | $52,500 | $157,500 |
| 540 days | $52,500 | $210,000 |
That is $157,500 in the first year. Some builders front-load (10% in 30 days); some spread further out. Neither is wrong, but you need to know which one you are signing.
The deposit schedule builder turns your agreement's structure into dated cheques, and the comparator puts two structures side by side by cash-out-by-month.
What the money is not doing
Deposits sit with the builder, earning you nothing, for two to three years. At a 4% savings rate, $157,500 over 30 months is roughly $14,000 of interest you did not receive. It is a real cost of buying early; the tools show it.
How deposits are protected
Condominiums. Deposits are held in trust by the builder's lawyer, and Tarion's deposit protection covers up to $20,000 (higher on some agreements). The trust is the real protection.
Freehold homes. Deposits are not held in trust. Tarion's protection is $60,000 or 10% of price, whichever is greater, up to $100,000 on a home over $600,000 — and only if the builder fails to close. Above that you are an unsecured creditor. This is not a reason to avoid freehold; it is a reason to check the builder's history and, where offered, ask whether deposit insurance is available.
Three things to do before you sign
- Ask for the deposit schedule in dollars and dates, not percentages, and put it in your calendar.
- Add the year-one total to your closing-cost estimate; that is your real cash requirement.
- Confirm the balance-on-closing figure and run closing-day readiness on it — the mortgage has to cover it.
Estimates only, for information. Not mortgage, tax or legal advice. Rates, rules and rebates change; confirm every figure with your lender, lawyer and the CRA before you rely on it.
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