Is my deposit part of my down payment or a separate closing cost in Ontario?

Your deposit is not a separate closing cost — it forms part of your down payment. When you make an offer to purchase in Ontario, you typically deliver a deposit to the seller's real estate brokerage in trust. That deposit is held in trust until closing and then applied toward the total purchase price you owe.

On your statement of adjustments, the deposit appears as a credit to the buyer, reducing the amount of money you need to bring to closing. Your down payment consists of whatever you pay upfront — including the deposit — while your mortgage finances the remainder of the purchase price. The deposit and any additional funds needed to complete the down payment, plus all closing costs, are the amounts you need to have ready for closing day.

If the deal falls through after conditions are waived for reasons within your control, you may be at risk of losing your deposit. If the deal collapses because of an unfulfilled condition (and conditions are properly handled), your deposit is typically returned. Your lawyer will ensure the deposit is properly credited on the closing statement so it counts against what you owe.