How Much Does My Deposit Need To Be to Purchase in Toronto?

In Toronto, deposits are typically around 5% of the purchase price; however, in competitive bidding situations, a 10% deposit can make your offer stand out

The deposit is a key signal of commitment in any real estate transaction. While there’s no fixed rule, the amount you choose can directly impact how your offer is received.

What Are Typical Deposit Amounts?

• Standard practice: About 5% of the purchase price is considered the minimum deposit in Toronto.
• Competitive scenarios: In multiple-offer situations, a deposit of around 10% can strengthen your offer and demonstrate your seriousness and financial capability.

How Does the Deposit Work?

Your deposit isn’t an extra fee—it’s part of your down payment.

The deposit you provide upfront is applied toward your total down payment at closing. It serves as proof of your intent and gives the seller confidence in your ability to complete the purchase.

Can the Deposit Help in Negotiations?

Yes. A larger deposit can act as a good-faith gesture, making your offer more attractive. While sellers rarely counter deposit amounts separately, having a substantial deposit strengthens your position and can tip the balance in your favour.

The Fox Marin Real Team guides buyers on deposit strategies that align with both market conditions and personal financial readiness, helping Fox Marin clients submit the strongest possible offers.

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