How much is the deposit on a house in Ontario? (2026)

In Ontario, the deposit on a resale home is whatever amount you and the seller write into the agreement of purchase and sale. None of the rules on deposits set a minimum or a percentage. What the rules do cover is timing and safekeeping: under the standard agreement most agents use, a deposit due "upon acceptance" must reach the deposit holder within 24 hours of acceptance, and a brokerage that holds it must put it in its trust account within five business days.

The deposit is not an extra cost. It's the first part of your payment for the home. But it comes due fast, it has to be cash you can reach in a day, and it is hard to get back if you change your mind. Here's how it works.

No set amountSize of the depositNegotiated in the agreement of purchase and sale

24 hoursTo deliver a deposit due "upon acceptance"OREA standard agreement

5 business daysFor the brokerage to put it in its trust accountO. Reg. 567/05, s. 17

$200,000Most RECO's deposit insurance pays per claim$4 million for one event

$0Cost of that insurance to youNo deductible

2 yearsA brokerage can hold a disputed depositThen it moves to RECO, in trust

New homes bought from a builder follow different rules (see below).

Source: Ontario Regulation 567/05 (Trust in Real Estate Services Act, 2002); Real Estate Council of Ontario (consumer deposit insurance); Ontario Real Estate Association (standard forms).

Deposit vs. down payment

People mix these up, and the difference matters for your cash planning.

• The deposit is paid when your offer is made or accepted. It shows the seller you're serious. RECO, Ontario's real estate regulator, calls it a gesture of good faith that gives the seller security that you have a stake in the deal.
• The down payment is the total amount of your own money that goes into the purchase. The rest is your mortgage. Federal rules set the minimum: 5% of the first $500,000, 10% of the part of the price above $500,000, and 20% of the whole price for homes at $1.5 million or more.

The deposit goes toward the purchase on closing, so it is part of your down payment, not on top of it. If your deposit is smaller than your down payment, you pay the difference on closing day through your lawyer.

How much should the deposit be?

There is no official figure. The amount is one of the terms of your offer, like the price and the closing date, and the seller can accept it, reject it or counter with a different amount. The Ontario Real Estate Association (OREA), which publishes the standard agreement, describes an adequate deposit as one of the essential elements of an agreement to buy real estate.

In practice that means two things. A seller comparing offers may read the deposit as a sign of how committed and how well financed each buyer is. And you should never offer a deposit you can't deliver on time. Ask your agent what sellers in that neighbourhood and price range usually expect before you write the number in.

A worked example

Say you offer $900,000 on a home in Mississauga with a $45,000 deposit. That deposit amount is only for illustration; yours could be higher or lower.

• Minimum down payment: 5% of $500,000 ($25,000) plus 10% of the remaining $400,000 ($40,000) = $65,000.
• Deposit, paid within 24 hours of acceptance: $45,000.
• Still owing toward the down payment on closing: $65,000 − $45,000 = $20,000.

If you were putting 20% down ($180,000) instead, the same $45,000 deposit would leave $135,000 to bring on closing. Either way you also need your closing costs in cash, including $14,475 of Ontario land transfer tax at this price. Our land transfer tax calculator and the guide to closing costs in Ontario cover those.

When do you pay it?

OREA's standard agreement gives three choices, and your offer picks one:

1. "Herewith": the deposit is handed over with the offer.
2. "Upon acceptance": OREA's forms define this as delivering the deposit to the deposit holder within 24 hours of the agreement being accepted.
3. "As otherwise described in this Agreement": a clause sets out a different plan, such as a later date or more than one payment.

Read the deposit line in your own agreement, because that wording is what binds you. OREA warns that the 24-hour term has to be strictly met.

Paying late, or not at all, is serious. RECO is clear that an accepted offer is binding and that failing to deliver the deposit does not cancel the deal. It is a breach of the agreement. The seller could end the deal and even take legal action against you.

So line up the money before you offer. If your savings are in a FHSA or an RRSP, in investments or in an account outside Canada, ask how long a withdrawal or transfer takes. If you can't get the cash within 24 hours, have your agent write a deposit schedule you can meet into the offer.

Who holds the deposit, and is it safe?

Your agreement names the deposit holder. It is usually a real estate brokerage. The seller does not get the money while the deal is pending.

Ontario law sets out how a brokerage must handle it:

• It must deposit the money in its real estate trust account within five business days of receiving it. Saturdays and holidays don't count.
• It must tell you in writing the terms on which it holds the money, including whether the account earns interest and at what rate.
• It can pay the money out only according to the terms of the trust.

Every registered agent and brokerage in Ontario must also take part in an insurance program that includes consumer deposit insurance. It responds if your deposit is lost to brokerage theft, fraud, insolvency or misappropriation of funds. It costs you nothing and has no deductible. It pays up to $200,000 per claim and up to $4 million for all claims from one event, shared proportionally if the claims add up to more. Fraud where someone tricks you into sending the money to the wrong place is covered only up to $25,000, so confirm payment instructions with the brokerage directly before you send anything.

Two limits to know. The insurance does not cover a deposit paid to a builder. And it does not settle arguments between you and the seller about who should get the money.

Can you get your deposit back?

It depends on why the deal ended.

A condition wasn't met. If your offer is conditional on financing or a home inspection and the condition isn't satisfied in time, the agreement normally says the deposit is returned. Even so, the brokerage needs paperwork before it can release the money: a mutual release signed by both buyer and seller, or a court order. OREA also notes that courts expect buyers to make a reasonable, good-faith effort to satisfy their conditions.

You changed your mind after the deal was firm. You are in breach of the agreement. The seller is unlikely to sign a release, and can pursue you in court. RECO notes that many buyers who tried to walk away from a signed deal ended up with significant penalties.

You and the seller disagree. The deposit stays in trust until you both sign or a court decides. If nothing is settled after two years, the brokerage transfers it to RECO, which keeps holding it in trust.

New homes from a builder are different

Deposits on pre-construction homes are usually paid to the builder or the builder's lawyer, and RECO's deposit insurance doesn't apply to them. Tarion's deposit protection does:

• New freehold homes: up to $60,000 if the price is $600,000 or less, and 10% of the price up to $100,000 above that.
• New condos: deposits must be held in trust under the Condominium Act, and Tarion protects up to $20,000 plus some interest.

Money paid to reserve a home before you sign the purchase agreement is not protected. Tarion is also bringing in a requirement for freehold buyers to register their purchase within 45 days of signing, and says changes to deposit coverage are deferred until January 1, 2027. Check Tarion's site for the current steps if you're buying new.

What this means for GTA buyers

• Get the cash ready before you offer. Know exactly where the deposit is coming from and how fast you can move it.
• Budget it as part of your down payment. Work out the deposit, the rest of the down payment and the closing costs as three separate amounts. The mortgage calculator shows the payment side.
• Check who you're paying. Make sure the brokerage named as deposit holder is registered with RECO, and confirm payment details by phone, not only by email.
• Keep your conditions if you can. They are what lets you leave with your deposit when the financing or the inspection goes wrong. Seeing the home properly first helps too: you can book a showing on any listing on Dibz, or buy with an agent who can advise on the deposit before you sign.
• Ask in writing about interest. The brokerage has to tell you the terms.

New to the process? The first-time home buyer guide for Ontario puts the deposit in the context of the whole purchase.

FAQ

Is there a minimum deposit on a house in Ontario?

No. The rules on deposits cover how the money is handled, not how much it is. The amount is negotiated between you and the seller and written into the agreement of purchase and sale.

Is the deposit the same as the down payment?

No, but it counts toward it. The deposit is paid at the offer stage. The down payment is the total cash you put into the purchase, with the balance paid on closing.

What happens if I pay the deposit late?

You've breached the agreement. The deal isn't automatically cancelled, but the seller may be able to end it and take legal action. If you know you'll need more time, put a workable deposit date in the offer.

Do I earn interest on my deposit?

Only if the terms say so. The brokerage must tell you in writing whether the trust account earns interest and at what rate, so ask before you pay.

What if the brokerage holding my deposit goes out of business?

Consumer deposit insurance, which every registered Ontario brokerage and agent must take part in, covers deposits lost to brokerage insolvency, theft, fraud or misappropriation, up to $200,000 per claim. Report a problem to RECO's insurance department as soon as you learn of it.

Sources

• Ontario Regulation 567/05 (General) under the Trust in Real Estate Services Act, 2002: trust money, sections 14 to 18
• RECO: Consumer deposit insurance and its FAQ
• RECO: Deposits play an important role in a real estate transaction
• RECO Bulletin 3.1: Disclosures, consents and acknowledgements
• OREA: Deposits can seal the deal (the deposit options in the standard agreement)
• OREA: The fate of the deposit if the deal falls through
• Financial Consumer Agency of Canada: How much you need for a down payment
• Tarion: Coverage before you close and registering your purchase

This article is general information, not legal, tax or financial advice. Rules change; confirm the details with your lawyer, lender or the official source.