Craighurst Crossing Deposit Structure: Pre-Construction Home Guide

 

Buying new construction homes in Ontario — especially a pre-construction property like the homes at Craighurst Crossing in Oro-Medonte — is an exciting milestone. But it’s also a process that involves important financial commitments well before you get the keys. One of the most misunderstood aspects is the deposit structure — how and when you pay your deposit, what it means for your finances, and how it protects you as a buyer.

What Is a Deposit Structure?

When you buy a resale home, you usually pay a single deposit — often 5 % of the purchase price — shortly after your offer is accepted. With new construction or pre-construction homes, the deposit is staged over a period of time in installments. This means instead of putting down a large lump sum all at once, you make several smaller payments over a schedule agreed upon in your Agreement of Purchase and Sale (APS).

These staged deposits serve as good faith money — signaling your commitment to purchase — and give the builder some financial assurance as construction progresses. For buyers, spreading this obligation out can make budgeting easier, as you don’t need to produce a large sum upfront.

How Deposit Schedules Typically Work in Ontario

While there’s no one single provincial deposit plan, most builders use similar staged structures for new homes. Common elements include:

1. Initial Deposit

• Paid when you sign the APS.
• Often a small percentage (sometimes as low as 2–5 %) or a fixed amount.
• This reserves your home and is typically due immediately or within a few days of signing.

2. Scheduled Installments

• Additional deposits are due at set intervals — such as 30, 90, and 180 days after signing, or tied to milestones in the project timeline.
• These are usually percentages of the price that cumulatively bring your total deposit to 15–25 % of the purchase price before closing.

3. Final Deposit or Closing Balance

• Some developers require a final deposit installment at occupancy or closing.
• Others may allow you to pay the remainder of the deposit with the mortgage funds at closing.

This structure is beneficial in that it spreads out your cash flow needs, but it also means you need to plan ahead so you’re ready to make each payment on time. Missing deposit deadlines can jeopardize your contract.

Where Your Deposits Are Held — Trust and Protection

When buying new construction homes in Ontario, deposits are not paid directly to the builder. Instead:

• They are generally held in trust by the builder’s lawyer until closing. This means your money isn’t released to the builder to fund construction directly.
• Storing deposits in trust offers added protection in the event the project is delayed or cancelled.

Builder deposit practices are governed by both contractual agreements in the APS and oversight through Ontario’s consumer protection framework. In particular, the Tarion Warranty Corporation provides protections for deposits up to specified limits, depending on the price of the home.

For many buyers, confirming that deposits are held in a proper trust account is essential — and a key reason why working with a real estate lawyer is recommended before signing anything.

Ontario Government Protections

Ontario law also gives buyers a cooling-off period, typically ten calendar days after signing the APS and receiving required disclosures, during which you can change your mind and cancel the purchase without penalty. This helps protect buyers who may feel rushed or uncertain about large commitments such as staged deposits.

Deposit Structure at Craighurst Crossing — What to Expect

At Craighurst Crossing, a thoughtfully planned community by Georgian Communities in the historic village of Craighurst, the deposit structure follows a staged payment plan that reflects both market norms and a buyer-friendly approach.

Here’s the current deposit schedule (subject to change, so always confirm with the sales team or your lawyer):

• 2 % upon purchase (with signing)
• 2 % at 90 days
• 2 % at 180 days
• 2 % at 210 days
• 2 % at 240 days

This totals 10 % of the purchase price paid over several months.

Compared to some deposit structures that require 15–20 % of the price before closing, Craighurst Crossing’s structure spreads out the obligation and can make managing finances more predictable for buyers.

Deposit structures may seem complicated at first, but they’re fundamental to buying a new home in Ontario. They protect both the buyer and the builder, ensure cash flow during construction, and help frame the financial commitment over time — not all at once.

For new construction homes in Ontario like Craighurst Crossing by Georgian Communities, their structured deposit schedule offers a clear roadmap for payment, empowering buyers to plan confidently and enjoy the process of building a new home.

As always, review your Agreement of Purchase and Sale closely, consult with your real estate lawyer, and ask the builder’s sales team detailed questions about deposits, protections, and timelines before you commit.