How Deposit Amounts Are Calculated
In Ontario, the purchase price reflected on your Agreement of Purchase and Sale (APS) includes HST but does not include: development levies and land transfer tax. Your deposits are usually calculated as a percentage of the purchase price.
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Example
Suppose your purchase price is $876,990.000 and the APS is dated for Oct 8, 2025.
The deposit schedule reads "$10,000 upon signing. Remainder of 2.5% 30 days after signing, 5% 100 days after signing, and 10% 200 days upon signing, 2.5% upon occupancy". Assume a June 1, 2026 occupancy date.​
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Your deposit schedule would be:
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Oct 8, 2025
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Nov 7, 2025
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Jan 16, 2026
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Apr 26, 2026
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Jun 1, 2026
$10,000
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$11,925
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$43,850
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$87,699
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$21,925
2.5% less the previous deposit
Where Are Deposits Held
Deposits are held in trust by the builder's lawyer. Your deposit cheques are not written directly to the builder. The funds are not be used for financing or building the project. The deposit is simply a sign of commitment from the purchaser.
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Most purchaser provide the first deposit as a bank draft or certified cheque. The subsequent deposits are usually post-dated cheques.
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The builder's lawyer will then send you a Notice of Compliance for each deposit instalment confirming their receipt. ​​​​​
All content on this site is provided for educational purposes only and does not constitute legal, financial, or real estate advice.