Pre-Construction Deposit Calculator
Turn a builder's deposit structure into real dollars and due dates, and see what's left to finance on closing. Covers the common GTA condo and townhome structures.
Rules and rates as of October 2026
Many project pages on our site list the builder's structure; reduced deposits are a common incentive.
Total deposit (20%)
$170,000
| Payment | Due | % | Amount |
|---|---|---|---|
| On signing | Oct 30, 2026 | 5% | $42,500 |
| In 90 days | Jan 28, 2027 | 5% | $42,500 |
| In 180 days | Apr 28, 2027 | 5% | $42,500 |
| In 365 days | Oct 30, 2027 | 5% | $42,500 |
- Balance due on closing
- $680,000
- Minimum down payment for this price
- $60,000
Your deposits cover a 20% down payment, so no mortgage insurance is needed.
Estimates only, based on the rules in effect in October 2026; not legal, tax or financial advice. Your agreement of purchase and sale, lender and lawyer have the final numbers.
How pre-construction deposits work
Instead of a down payment on closing, a pre-construction buyer pays a deposit in installments while the home is being built. The first cheque goes in with the offer and the rest are usually post-dated cheques handed over at signing. Everything you deposit is credited to the price on closing and counts as your down payment.
The balance is paid on closing, usually with a mortgage arranged near completion. That's why the deposit structure matters as much as the price: a 20% structure over two years is a very different commitment from 10% up front, even on the same home.
Protecting your deposit
- New condos: deposits must be held in trust under the Condominium Act; Tarion covers up to $20,000 if one wasn't.
- Freehold homes: Tarion covers up to $100,000 depending on the price. Since April 1, 2026, register your purchase with Tarion within 45 days of signing to keep full coverage.
- Condo buyers get a 10-day cooling-off period; use it to have a lawyer review the agreement.
- Check the builder is licensed with the Home Construction Regulatory Authority before you pay anything.
Plan the rest of your purchase
Budget for closing costs, check the HST rebates you can claim, and estimate the mortgage payment on the balance.
Frequently asked questions
How much deposit do you need for a pre-construction condo in Toronto?
Most GTA condo launches ask for 15% to 20% of the price, paid in installments over the first 12 to 24 months: for example 5% on signing and 5% at 90, 180 and 365 days. Townhomes and detached homes often ask for less in total but larger early payments. Extended or reduced structures are a common launch incentive.
Does my pre-construction deposit count as my down payment?
Yes. Deposits are credited toward the purchase price on closing, so a 20% deposit is a 20% down payment and avoids mortgage insurance. Your lender will still appraise the home on closing; if the appraisal comes in below the price, you cover the difference in cash.
Is my deposit protected if the builder fails?
For new condos, the Condominium Act requires deposits to be held in trust, and Tarion covers up to $20,000 if a deposit wasn't. For freehold homes, Tarion's deposit protection covers up to $100,000 depending on the price, and since April 1, 2026 freehold buyers must register their purchase with Tarion within 45 days of signing to keep full coverage.
Can I cancel a pre-construction condo after paying the first deposit?
New condo buyers in Ontario have a 10-day cooling-off period after receiving the signed agreement and disclosure statement, during which they can cancel and get the deposit back. Freehold homes have no statutory cooling-off period unless the agreement gives one. After that, walking away usually means losing the deposits.
What happens if I can't make a deposit payment?
A missed deposit is usually a default under the agreement: the builder can terminate it and keep what you've paid. If your finances change, talk to the builder early; some allow a revised schedule, and an assignment (selling your contract) may be an option if the agreement permits it.
More calculators for new-home buyers
Shopping for a new home? Browse pre-construction projects across the GTA or get alerts when new projects launch.