How much deposit do I need to put down when making an offer in Ontario?
There is no legally required minimum deposit amount in Ontario — it is whatever the buyer and seller agree to include in the Agreement of Purchase and Sale. In practice, deposits on residential properties typically range from 1–5% of the purchase price, though competitive markets often see buyers offering higher deposits to signal seriousness.
The deposit is usually due within 24 hours of acceptance (known as a "herewith" deposit) or within a set number of business days specified in the APS. It is held in trust by the real estate brokerage — not released to the seller — until closing.
The deposit is distinct from your down payment. It forms part of your down payment on closing day, so it is not an additional cost on top of it. However, if you fail to close without a valid legal excuse, you risk losing your deposit and potentially facing a damages claim from the seller. Speak with a lawyer before waiving conditions if you have any concerns about your ability to close.
Key takeaways
- No minimum deposit is legally required; it is negotiated between the parties.
- Typical deposits range from 1–5% of the purchase price in Ontario.
- The deposit is held in trust and applied toward your down payment on closing.
- Failing to close without justification puts your deposit at risk.