Buying a pre-construction condo in the GTA involves a deposit paid in stages over time, rather than a single lump sum at closing the way a resale purchase works. Understanding the typical structure — and that it varies by developer — helps buyers plan their cash flow well before the unit is actually built.
What's a Typical Total Deposit?
Total deposits on GTA pre-construction condos commonly range from 15% to 25% of the purchase price, paid in installments over the pre-construction period rather than all at once. Low-rise pre-construction projects sometimes require a higher total, in the 20% to 25% range, paid before closing.
A Common Payment Schedule
While every developer sets its own schedule, a widely used structure in the GTA looks like this:
| Payment | Typical timing |
|---|---|
| 5% | On signing |
| 5% | Within 90 days |
| 5% | Within 180 days |
| 5% | At occupancy |
This structure totals 20%, though some developers add an additional installment or structure the percentages differently — there is no single, province-wide deposit schedule. Each developer publishes their own specific schedule in the Agreement of Purchase and Sale or pre-launch sales materials, so always confirm the exact numbers for the specific project you're considering rather than assuming this common pattern applies.
Is My Deposit Protected?
Yes, within limits. Ontario's Condominium Act, 1998 requires condo deposits to be held in trust, and deposits over $20,000 are protected under the Act's trust and excess-deposit provisions. This protects buyers if a builder becomes insolvent or a project is cancelled before completion — though buyers should still confirm the specific protections in place for their purchase. See our guide to Tarion's warranty and deposit protection for more on how this works for both condos and freehold homes.
Financing Your Deposit Payments
Because pre-construction deposits are paid over months or years before the unit is even built, they generally can't be financed through a mortgage the way a closing payment can — most buyers pay deposit installments from savings. This is an important distinction from a resale purchase, where your down payment is typically due closer to a single closing date, and worth factoring into your overall budget planning well before you sign.
What Happens at Closing?
By the time your unit is complete and ready for final closing, your cumulative deposits (commonly 15-25% of the purchase price) count toward your total down payment. You'll typically need to arrange mortgage financing for the remaining balance at that point, based on the mortgage rates and stress test rules in effect when you close — which may differ from when you originally signed, sometimes years earlier. See our guide to how the mortgage stress test works for how this affects what you'll qualify for at closing.
FAQ
How much deposit do I need for a pre-construction condo in the GTA?
Typically 15% to 25% of the purchase price, paid in installments over the pre-construction period rather than all at once — the exact structure varies by developer.
Is my pre-construction condo deposit protected?
Deposits over $20,000 are protected under the Condominium Act, 1998's trust provisions, though buyers should confirm the specific protections in place for their transaction.
Can I use a mortgage to pay my deposit installments?
Generally no — deposit installments are typically paid from savings, since mortgage financing usually isn't arranged until closer to final closing when the unit is complete.
What happens to my deposit if the developer cancels the project?
Deposits held in trust under Ontario's Condominium Act protections are generally returned to buyers if a project is cancelled, though the specific process depends on the circumstances — consult a real estate lawyer if this happens.
Is the deposit schedule the same for every GTA pre-construction project?
No — there's no province-wide standard. Each developer sets its own schedule in the Agreement of Purchase and Sale, so always review the specific terms for the project you're considering.
Considering a pre-construction purchase? See our guide to Ontario's 10-day cooling-off period for new condos, or browse current resale condo listings if you'd rather move in sooner.
Sources
This guide reflects general industry practice and Ontario's Condominium Act, 1998. Deposit structures vary by developer — always confirm the exact terms in your specific Agreement of Purchase and Sale. This is general information, not legal or financial advice.