The Deposit structure for purchasing a pre-construction condo varies by builder and project. Depending on the project’s deposit structure you can expect to put down between 5%-20% of the purchase price. Most builders require a total of 20% down. However, it is important to note that the 20% is not normally expected upfront in one payment. This allows a pre-construction condo purchaser to split up payments.

Deposit Structure Example:

Let’s say you were interested in buying a pre-construction condo for $300,000.

$2,000 deposit given when signing the offer 
$13,000 (balance of 5%) in the first 30 days (from signing), 
$15,000 (5%) in 90 days, 
$15,000 (5%) in 170 days,
 $15,000 (5%) in 365 days.

This makes a total of 20% (or $60,000) of the $300,000 purchase price. Upon the condominium finishing construction and the Agreement of Purchase and Sale being completed, the mortgage on the new unit would now be $240,000.

Although most pre-construction condos will have a similar structure, at times builders will offer different incentives or payment schedules when signing for a unit. For instance, a builder may offer $2,000 down when you sign, the balance of 5% in the first 30 days, and the balance of 15% on occupancy. This structure makes the 20% deposit more manageable and easier to plan for when arranging your finances.

Here is an example of a past project

Deposit Structure Example

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