Irina Marchenkova · RE/MAX Realtron Realty
How real estate deposits work in Ontario: how much to offer, when it's due, who holds it, and when you get it back, for resale and pre-construction homes.
By Irina Marchenkova, Sales Representative, RE/MAX Realtron Realty · Last updated October 2026
When your offer on a home is accepted in Ontario, you’ll need to deliver a deposit, usually within 24 hours. It shows the seller you’re serious, it’s held in trust until closing, and it counts toward your purchase price. But a deposit also comes with real risk if the deal falls apart. Here’s how deposits work for resale and new homes in Ontario.
A deposit is money the buyer pays when the agreement of purchase and sale is accepted. It’s a sign of good faith and a form of security for the seller. It is not the same as your down payment, but it becomes part of it: on closing day, the deposit is applied to the price and you pay the balance through your mortgage and savings.
There is no fixed rule. The amount is negotiated in the offer. In the Toronto area, resale deposits are often around 5% of the price, and a larger deposit can make your offer more attractive in multiple offers. For pre-construction homes and condos, builders usually require much larger deposits, paid in stages.
| Type of purchase | Typical deposit | How it is paid |
|---|---|---|
| Resale home or condo | Often about 5% of the price (negotiable) | One payment, usually within 24 hours of acceptance |
| Pre-construction condo | Often 15% to 20% of the price | Several instalments over 1 to 2 years |
| New freehold home from a builder | Varies by builder, often 10% or more | Instalments set by the builder |
Most Ontario offers say the deposit is due within 24 hours of acceptance. You typically pay by bank draft, certified cheque or wire transfer to the listing brokerage’s trust account. Have the funds ready before you make an offer, because missing the deadline can put the deal at risk. Keep records: your lender will want to see where the deposit came from.
On resale purchases, the deposit is usually held in trust by the listing brokerage, under rules overseen by the Real Estate Council of Ontario (RECO). The seller doesn’t receive it until closing. For new homes, deposits are paid to the builder or to a trustee, and protections apply: Tarion provides deposit protection for new homes up to set limits, and condo deposits beyond that coverage must be held in trust or insured under Ontario’s Condominium Act.
This is why conditions matter. See my guide to real estate clauses and conditions.
Savings, investments, a First Home Savings Account, RRSP withdrawals under the Home Buyers’ Plan, or a gift from family. Plan ahead: RRSP and FHSA withdrawals can take several days to process, so many buyers keep part of their deposit in a regular account they can access within 24 hours.
Not sure how much deposit to offer? I’ll help you balance a competitive offer with protecting your money. Get in touch, or see my closing costs guide.
Yes. The deposit is credited toward the purchase price at closing, so it counts as part of your down payment.
It is usually refunded if a condition is not met and the deal ends, once both parties sign a mutual release. If the deal is firm and the buyer backs out, the seller can generally keep it.
Usually not. Brokerages typically require a bank draft, certified cheque or wire transfer. Ask your agent for the brokerage’s instructions.
For resale homes, usually not unless the agreement says so. For new condos, Ontario rules generally require builders to pay interest on deposits held for the purchase.
General information, not legal advice. Your lawyer can explain how the deposit terms in your agreement apply to you.
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