The Deposit Calculator Blueprint
- The 5% Milestone: Your first massive hurdle, usually due within 30 days of signing.
- Extended Structures: In 2026, many builders offer 10% structures instead of 20%.
- Trust Protection: All condo deposits are legally required to be held in trust in Ontario.
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. This is a cold, mathematical commitment that must be planned years in advance.
1. The Anatomy of a Standard Deposit Schedule
For a typical $600,000 unit, you aren't writing one cheque. You are committing to a series of financial milestones. While every developer is different, the "Extended Structure" is the dominant model in 2026:
- Signing: A $10,000 draft due immediately to secure the unit and start the cooling-off period.
- 30 Days: The balance to 5% (e.g., $20,000). This is when the contract becomes truly binding.
- 180 Days: Another 5% ($30,000).
- 365 Days: Another 5% ($30,000).
- Occupancy: The final 5% ($30,000) due when you receive your keys (Interim Occupancy).
2. Are You Ready for the "Occupancy" Shock?
Many buyers plan for the first 15%, but forget the final 5% due on occupancy. Because occupancy can happen 3-4 years after you sign, you must have a high-interest savings plan (or FHSA) working for you during those "silent years" of construction. If you reach occupancy day and cannot provide that final 5%, the builder can seize the previous 15% and terminate the contract.
3. Negotiating for New Home Buyers
In the current 2026 market, leverage has returned to the buyer. If a project is less than 70% sold, the developer is highly motivated to secure your PPS (Purchase Price) to satisfy their lender's construction requirements. Ask for:
- A 10% Total Deposit: Some developers will accept 5% in the first year and 5% on occupancy.
- The "Decor Credit": Instead of a lower price, ask for $10,000 in free upgrades at the decor studio.
- The Lawyer Review Extension: Asking for 15 days instead of 10 to review the complex APS.