The Bottom Line
- 20% is Standard for FTHBs: Unlike a 5% resale minimum, most condo builders require a total 20% deposit.
- The 10-Day Grace Period: You only need a $5,000 to $10,000 draft on signing; the rest of the 5% is due after your cooling-off period.
- Use the Deposit Planner: Try our Deposit Planner Tool to map out your exact payment dates.
One of the biggest appeals of buying a pre-construction property in Ontario is time. You don't need your entire down payment on the day you sign. Instead, builders require staggered payments—typically 20% of the purchase price—spread over 18 to 24 months. But while the time is helpful, missing a payment is catastrophic. Here is exactly how these structures work.
The Standard "5/5/5/5" Structure
If you're buying a pre-construction condo in the GTA or surrounding areas like Guelph, Kitchener, or Hamilton, you will almost certainly encounter the 20% extended deposit structure. It usually looks like this:
- Signing Day: A flat amount, usually $5,000 or $10,000, payable by bank draft.
- The Balance of 5%: Due exactly 30 days after signing (minus your initial flat amount).
- The 90-Day Mark: Another 5% of the purchase price.
- The 180-Day Mark: Another 5%.
- The 365 or 540-Day Mark: The final 5%, or sometimes 5% due on occupancy.
Can You Negotiate the Deposit?
In a hot market, developers will simply hand the unit to the next buyer in line if you ask for a flexible deposit. However, in the balanced 2026 market, many builders are offering "Extended Deposit Structures" as incentives.
For example, a builder might offer a 10% total deposit structure for first-time buyers, stretched over 2 years (e.g., $5,000 on signing, balance to 5% in 30 days, 2.5% in 90 days, 2.5% in 180 days). If you see a builder advertising a "10% Deposit Program," it is an excellent opportunity for first-time buyers who are struggling to save 20% in liquid cash.
What happens if you miss a deposit?
Missing a pre-construction deposit is a breach of contract. The builder can—and often will—cancel the Agreement of Purchase and Sale, keep all the deposit money you have already paid, and potentially sue you for damages if they have to sell the unit to someone else for a lower price. Never sign an APS unless you have 100% certainty the funds will be liquid on the due dates.
Where Does Your Money Go?
Your deposit cheques do not go directly into the developer's bank account to fund their personal lifestyle. Under the Condominium Act in Ontario, your deposits must be held in trust by a prescribed lawyer, or be guaranteed by an insurer (like Tarion). This ensures that if the developer goes bankrupt and the project never gets built, your deposit money is legally protected and will be returned to you.