One of the most misunderstood aspects of buying pre-construction is the deposit structure. Unlike resale, where you typically put down 5–20% at once, pre-construction deposits are paid in stages over 12–24 months.
Typical Deposit Structure
Most Toronto builders require 15–20% total, broken into installments:
- ▸5% on signing
- ▸5% at 30–90 days
- ▸5% at 6–12 months
- ▸2.5–5% at occupancy
This staggered approach gives buyers time to save while their unit is being built.
Your Deposit Is Protected
In Ontario, pre-construction deposits are protected under the Tarion warranty program up to $100,000. For amounts over $100,000, buyers should consider additional protection strategies.
What Happens If the Builder Cancels?
Builder cancellations do happen. Your deposit must be returned in full, but you won't be compensated for rising prices or opportunity cost. This is why choosing a reputable builder matters.
Want to know which builders have the strongest track records? Our team can help.
January 29, 2026