The quick answer = it is generally 20%. If you are a non-resident, you will be required to make total down payments of 35%. Occasionally developers will offer incentives of 5, 10 or 15% total down payment due and these incentives usually occur AFTER a developer has started construction of the building. Once the builder has started construction, they are more likely to be more flexible on the amount of deposits required, but it really depends on the builder and their financing requirements. The deposits are staggered so you don’t need to pay the full amount in one payment and the deposits are typically spread out with an initial deposit on signing and then three, 5% increments.
An example of a deposit structure might look like this for a Canadian citizen/resident:
- $5000 deposit due on signing of contract.
- Balance to 5% deposit (meaning 5% minus your initial $5000 deposit on signing) due in 30 days after signing of contract (5% has been paid, in total, by day 30 after signing).
- 5% due 90 days after signing contract (10% total deposits paid by day 90).
- 5% due 180 days after signing contract (15% total deposits paid by day 180).
- 5% due on occupancy (20% total deposits paid by occupancy).
An easy rule of thumb is to plan for 20% deposits/down payment when you buy a new construction condo if you are a Canadian citizen/resident and 35% if you are a non-resident.