How much deposit do you need to make an offer in Toronto?

Ontario sets no minimum or maximum deposit for a resale offer. It is a negotiated term you set with your agent, held in trust by the seller's brokerage and insured up to $200,000. Buying new construction is different: Tarion caps deposit protection at $100,000 for a freehold home and $20,000 for a condo unit.

How much deposit do you need to make an offer in Toronto?

Ontario sets no minimum or maximum deposit for a resale offer, so the number written next to "deposit" on your offer is one you work out with your agent, not one the law hands you. Here is what actually decides that number, what protects the money once it changes hands, and where a new build works differently.

Is there a minimum deposit required in Ontario?

No. The Trust in Real Estate Services Act and the regulations RECO administers under it govern how a brokerage has to handle your money once you hand it over: where it sits, who can release it, and what insurance backs it. None of that legislation sets a required dollar amount or percentage for the deposit itself. A deposit is simply the money you submit with your offer to show you are serious and financially able to close, and the amount is a negotiated term of that offer, the same as price and closing date.

What actually decides how much to offer?

Three things: how competitive the property is, what you can afford to have tied up before closing, and your own strategy going into a multiple offer situation. RECO's own advice to buyers is to set a spending limit and your conditions before you are in a bidding war, then hold to them, because those situations move fast enough that a number decided in the moment rarely serves you well. A larger deposit can make an offer look more serious to a seller, but RECO is direct with buyers that a bigger number does not guarantee you win, and it should never come at the cost of a financing or inspection condition you actually need. Your agent represents your interests in that negotiation. You make the final call on the number.

What happens to my deposit if the deal falls through?

While your offer is still conditional, on financing or a home inspection for example, your deposit stays in trust and the deal is not final. Once those conditions are fulfilled or waived, the deposit becomes non-refundable in the ordinary course. This is exactly why your own conditions matter: they are what let you walk away with your deposit intact if financing does not come through or the inspection turns something up. Once a deal is firm, releasing the deposit for any other reason takes a mutual release signed by both you and the seller, or a court order. Neither side can simply take it.

How is my deposit protected once I submit it?

It never sits with your agent. It goes straight into the seller's brokerage's real estate trust account. On top of that trust requirement, every registered brokerage and salesperson in Ontario carries mandatory consumer deposit insurance at no cost to you, covering theft, fraud, brokerage insolvency and misappropriation of funds up to $200,000 per claim and $4 million total for a single event, with no deductible. A newer layer covers social engineering fraud, where someone impersonates your lawyer or agent to redirect the wire transfer, up to $25,000. What the insurance does not cover is a dispute between you and the seller over who the money should ultimately go to. That is a legal question the trust account rules settle through a signed release or a court order, not an insurance claim.

Does a new build work differently?

Yes, and it is worth knowing before you sign, because a builder is not a resale seller and a different body protects the money. Tarion caps deposit protection at $60,000 on a freehold home priced up to $600,000, and at 10% of the price to a maximum of $100,000 above that. On a condominium unit, Tarion's protection tops out at $20,000, and the builder has to hold your deposit in trust under the Condominium Act in the meantime. If a builder is asking for a deposit larger than the cap that applies to your purchase, the amount above that cap has no Tarion protection if the builder cannot complete or return it.

How do I actually deliver the deposit?

Your agreement of purchase and sale will spell out exactly when the deposit is due and how to get it there, and your agent will walk you through that step. It is typically paid by bank draft or certified cheque, made payable to the listing brokerage in trust rather than to the seller directly, which is what puts it into the trust account and the insurance coverage described above from the moment it is delivered. Do not wire money based on emailed instructions you have not verified by phone with your agent or lawyer directly. That is the exact opening the social engineering fraud coverage above exists for, and it is far better avoided than claimed against.

How does my deposit fit into what I need at closing?

Your deposit is not a cost on top of your down payment. It is the first instalment of it. Whatever you put down at the offer stage counts toward the total you owe at closing, with your mortgage covering the rest. If you want to see the full number you actually need on closing day, deposit included, our cash to close calculator works it out for you before you write the offer.

None of this replaces a conversation about your specific offer. If you are getting ready to write one in Toronto or the GTA, we can walk you through what deposit makes sense for your situation.