How do you calculate a pre-construction deposit schedule?
Add the actual payments required by the agreement, treating any credited signing payment only once. Divide that total by the purchase price to find the deposit percentage. Subtract the scheduled deposits from the purchase price to estimate the remaining purchase-price balance. Additional closing costs and financing are separate questions.
There is no universal schedule used by every Canadian builder. Confirm the amounts, dates and credit treatment in the actual agreement. The Pre-Construction Buyer Kit includes a 10-row planner with a labelled EXAMPLE mode and blank Your agreement override columns.
Fictional CAD $700,000 purchase: a 20% schedule
| Payment | Calculation | Cash due |
|---|---|---|
| On signing | Initial payment | $5,000 |
| 30 days: first 5% total | $700,000 × 5% − $5,000 already paid | $30,000 |
| 90 days | $700,000 × 5% | $35,000 |
| 180 days | $700,000 × 5% | $35,000 |
| 365 days | $700,000 × 5% | $35,000 |
| Total deposits | $5,000 + $30,000 + $35,000 + $35,000 + $35,000 | $140,000 |
Total percentage: $140,000 ÷ $700,000 = 20%. Remaining purchase-price balance: $700,000 − $140,000 = $560,000, before financing and additional closing costs.
Why does adding $5,000 and four 5% payments give the wrong example?
Four separate 5% payments already total 20%. At this fictional price, adding an extra $5,000 would produce $145,000, or approximately 20.71%. That is different from the illustrated 20% schedule.
The example therefore treats the signing payment as part of the first 5%, leaving $30,000 at the first instalment date. This is an explicit example assumption. If the actual agreement requires a signing payment in addition to later percentages, use that actual schedule instead. The purpose is accurate counting, not forcing a contract to fit a round percentage.
When entering a schedule, label the payment clearly enough that another person can check it. “First 5% total, less signing payment” conveys more than “5%”. Keep the written agreement reference beside the working calculation.
Separate the amount, the timing and the source of funds
For each row, record what is due, when it is due and who will verify payment instructions. A percentage alone does not tell the client whether the cash is available on time. Keep changes to payment instructions within the lawyer’s and brokerage’s verification process.
A separate cash-planning note can record where the client expects to obtain each payment and what needs confirmation. Avoid placing bank account numbers or unnecessary financial documents in a shared planning copy. A budget discussion does not establish financing eligibility.
Do not treat a scheduled deposit as automatically paid. If you keep a payment record separately, reconcile it to confirmed receipts and the lawyer’s closing statement. Distinguish scheduled totals from actual money received.
A deposit total is not a protection decision
Tarion’s Ontario coverage information distinguishes home types, limits and registration requirements, including a stated transition for changes to deposit coverage. Verify the current rules for the particular purchase. Do not describe the whole planned deposit as insured simply because the amount appears in a spreadsheet.
For a BC purchase, begin with BCFSA’s pre-sale guidance and ask the lawyer to confirm the actual deposit arrangements and applicable protection. The calculation and the legal protection are different checks.
Use the balance as a starting point for closing planning
The fictional $560,000 balance is not the final cash cheque and is not a mortgage approval. Financing, adjustments, amounts already paid and additional costs need to be reconciled for the actual transaction.
Use the new-construction closing-cost checklist to organise the next questions. The kit’s deposit and closing-budget files are separate workbooks; changes do not automatically sync between them. Check the agreement and each input again before sharing a final plan.