A pre-construction condo deposit in Toronto usually adds up to about 20 percent of the purchase price, and you pay it in installments over the months between signing and moving in rather than in one lump sum. That structure is the biggest thing separating a new build from a resale purchase.
Here is how the money tends to move. On a resale unit your deposit is a single payment, often around 5 percent, handed over with your offer. Buying new, the builder spreads a larger deposit across a schedule tied to project milestones. A common Toronto cadence is 5 percent when you sign, another 5 percent about 30 days later, a further 5 percent a few months in, and a final 5 percent when the building reaches occupancy. Some developers stretch that same total over 24 to 36 months, and a handful of promotional offers ask for as little as 5 percent held until occupancy. The exact percentages and dates live in your agreement of purchase and sale, so read that schedule closely before you sign.
Keep in mind that this deposit is not the same thing as your down payment. The deposit forms part of what you eventually owe, while the rest of your financing comes together closer to final closing, which on a new condo can land years down the road.
Your money is not sitting in the builder's operating account. Under Ontario's Condominium Act, every deposit on a pre-construction condo has to be held in trust in a separate account. Tarion, the provincial new-home warranty administrator, backs condo deposits up to $20,000, and builders must carry insurance or other security for anything above that amount. Should the builder cancel the project, your full deposit comes back to you.
One timing detail carries real weight. Ontario gives pre-construction condo buyers a ten-day cooling-off period after signing, and during that window you can walk away and recover everything you have paid. Once those ten days pass, the deposit schedule becomes binding and each installment is due on the dates set out in your contract.
Related reading: What Are Interim Occupancy Fees in Ontario Condos?, What Are Development Charges on a Pre-Construction Condo in Toronto?, and What If a Pre-Construction Condo Is Cancelled in Ontario?
