Pre-Construction Deposit Structures Explained
Instead of a single down payment, pre-construction buyers usually pay deposits in scheduled instalments between signing and closing.
Typical schedules
Freehold deposits are often a set dollar amount at signing followed by further payments at 30, 60, 90 or more days. The exact schedule for each release appears on the price list.
Deposit protection
For freehold homes in Ontario, deposits are protected by Tarion up to set limits based on purchase price. Ask your lawyer to confirm coverage for your agreement.
Planning cash flow
Map each instalment date against your savings. At closing you pay the balance of your down payment, closing adjustments and closing costs, then the mortgage funds the rest.