March 20, 2020 | Barb Livingstone
A deposit is the first financial hurdle a homebuyer needs to clear when buying a pre-construction home.
That deposit is generally five per cent of a home's total value for a purchase of less than $500,000, but it can be as high as 20 per cent for a $1-million-plus home. Those funds are a pre-construction commitment to the builder to take that condo or single-family home off the market. That money also gets put toward your eventual down payment.