How Much Deposit for a House in Ontario?

In Ontario, deposits are held in a real estate brokerage's trust account. A trust account is a separate, regulated account. The brokerage cannot use that money for its own expenses, and the funds sit there until the deal closes or the parties agree in writing on where the money goes.

Brokerages are regulated by RECO (the Real Estate Council of Ontario), and trust accounts come with rules and record-keeping requirements designed to protect your money.

Ontario deposit facts at a glance

• Typical amount. Answer: About 5% of the purchase price
• When it is due. Answer: Usually within 24 hours of the seller accepting your offer
• How you pay. Answer: Certified cheque, bank draft, or accepted electronic transfer
• Who holds it. Answer: The listing brokerage, in a regulated trust account
• What it counts toward. Answer: Your down payment at closing (not an extra cost)
• When it is at risk. Answer: If you walk away from a firm deal with no valid reason

Source: Zown Realty, Ontario 2026

Does the deposit count toward my down payment?

Yes. Your deposit is not an extra cost. It is an early instalment on the money you were already going to bring to the deal.

At closing, the deposit is credited toward your down payment. So if your down payment is $55,000 and you already put down a $35,000 deposit, you owe the remaining $20,000 (plus closing costs) on closing day. The deposit was simply the first piece of that total, paid early.

This is worth remembering when you budget. The deposit is a cash-flow timing question, not a separate expense. You need the money sooner, but it goes toward the same purchase.

Does a bigger deposit strengthen my offer?

Often, yes. A larger deposit signals to the seller that you are financially serious and confident the deal will close. In a competitive situation, a strong deposit can make your offer stand out even against a similar or slightly higher price.

That said, more is not always necessary. A deposit that meets the customary amount is usually enough, and you should not stretch beyond what you can comfortably deliver on short notice. The right amount balances making a strong impression with keeping your finances sensible.

The conditions in your offer matter here too. A clean, well-structured offer can be as persuasive as the deposit. For more on that, see offer conditions.

When is my deposit at risk?

Your deposit is at risk mainly in one situation: when you walk away from a firm deal without a valid reason.

An offer becomes firm once all conditions (like financing or a home inspection) are either met or waived. Before that point, if a condition is not satisfied and you back out properly under the terms of your agreement, you are generally entitled to your deposit back.

After the deal is firm, though, there are no more escape hatches. If you simply change your mind and refuse to close, the seller can pursue your deposit and, in some cases, more. This is why it is so important to understand your conditions and timelines before you sign. The Agreement of Purchase and Sale is the document that spells all of this out.

Frequently asked questions

Is the deposit the same as the down payment?

No. The deposit is a smaller amount you pay when the seller accepts your offer, usually around 5% of the price. The down payment is your full cash contribution to the purchase. Your deposit is credited toward the down payment at closing, so it is part of that larger total.

Can I get my deposit back if the deal falls through?

It depends on why. If a condition in your offer (such as financing or inspection) is not met and you back out properly, you generally get the deposit back. If you walk away from a firm deal with no valid reason, the seller may be entitled to keep it. Read your agreement carefully.

Where does my deposit money actually go?

Into a brokerage trust account, most often the listing brokerage's. It is a separate, regulated account. The seller cannot spend it while the deal is in progress. The money stays there until closing or until both parties agree in writing on where it goes.

How quickly do I need to hand over the deposit?

Usually within 24 hours of the seller accepting your offer, though your agreement sets the exact timing. Because certified cheques, bank drafts, and transfers from locked-in accounts take time, it is smart to have your funds ready before you make an offer.

What if I do not have 5% ready right away?

Talk to your agent early. Timing the release of funds from an FHSA, RRSP, or other savings can take a few days, so plan ahead. In some cases the deposit terms can be structured differently, but a ready-to-deliver deposit almost always makes for a stronger, smoother offer.

Does a bigger deposit lower my closing costs?

No. A bigger deposit does not reduce your total cost. It just shifts more of your down payment earlier in the process. The full purchase price stays the same, and your closing costs (like land transfer tax and legal fees) are calculated separately.

Buying your first home is easier when someone salaried, not commission-driven, walks you through each step, from the deposit to closing day. Our agents give you unbiased, end-to-end guidance so you know exactly what to bring and when.

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Last updated July 27, 2026. General information, not legal or financial advice.