What to Know About Deposits When Buying a Pre-Construction Home in the GTA from Remax Millennium's blog

Thinking about buying a new home that hasn’t been built yet? You’re not alone! Many home buyers like you are looking at pre-construction homes in GTA as a way to invest in their future. But before you jump in, let’s talk about deposits. They work differently than when you buy a ready-to-move-in home. Here’s what you should know to feel confident about your choice.

How Much Money Do You Need for New Condos for Sale in GTA?

If you want to buy a new condo, get ready to put down about 15–20% as your deposit. But don’t worry — you won’t need all the money at once! Let’s say your condo costs $600,000. You’ll need $90,000-$120,000 in total deposits. Most builders break this into smaller payments to make it easier for you.

When Will You Need to Pay Your Deposit?

Here’s how most builders split up your payments:

• First, pay $5,000 when you sign up
• Then, add more to reach 5% within 30 days
• Put in another 5% after 90 days
• Add 5% more after 180 days
• Pay the final 5% when your home is ready

Just remember — each builder might do things a bit differently, so read your agreement carefully!

Is Your Deposit Money Safe?

Looking at Pre Construction homes in GTA that aren’t built yet? Good news — your deposit is protected! A group called Tarion Warranty Corporation keeps your money safe. They protect up to $20,000 for regular homes and $100,000 for condos. Plus, most builders keep your money in special bank accounts with lawyers. This means extra safety for your cash!

Can You Get Your Money Back if You Change Your Mind?

Here’s the deal — you get 10 days to think it over. If you change your mind during this time, you’ll get all your money back. After that, it gets trickier. Usually, you can’t get your deposit back if you cancel. But if the builder cancels the project, they must return your money plus interest.

Remember, knowing these deposit rules helps you plan better when buying condos for sale in GTA. Work with a real estate agent who knows all about new homes, and always reads the fine print. This way, you’ll feel sure about your choice and keep your investment safe!