Your Deposit Is Due in 24 Hours: What That Means (2026)
Ontario offers typically require the deposit within 24 hours of acceptance. How much to put down, where it goes, when you get it back, and if the deal dies.
The deposit is the money you hand over when your offer is accepted, as proof you are serious. Standard Ontario offer forms make it due within 24 hours of acceptance; BC typically within 24 hours of subject removal; Alberta as the offer specifies. Amounts are by convention, not law. 5% of the price is common in Ontario ($37,500 on $750,000), higher in competitive Toronto and Vancouver markets. It goes to the listing brokerage's trust account, is credited toward your purchase at closing, and is forfeited (and possibly more) if you back out without a condition to rely on.
The CostToClose guided buying flow subtracts the deposit from cash due on closing.
Deposit vs down payment
They are not separate costs. The deposit is the first part of your down payment, paid early. On a $750,000 purchase with 10% down ($75,000), a $37,500 deposit means $37,500 more is due on closing, not $75,000.
Having it ready
- Certified cheque, bank draft or wire. Personal cheques and e-transfers are usually refused; most e-transfer limits are far below $37,500 anyway.
- Liquid before you offer. Funds in an RRSP, FHSA or investment account can take two to five business days to withdraw and settle. "Due in 24 hours" means the money must already be in a chequing account.
- Gift funds. Must be in your account and documented before the deposit is drawn.
- Bank hours. An offer accepted Saturday night with a 24-hour deadline is a Sunday problem. Ask for "one business day" in the offer.
Where the money sits
In the listing brokerage's real estate trust account (or, less often, the seller's lawyer's trust account), protected by provincial regulations and, in most provinces, an insurance fund. It earns little or no interest unless the offer says otherwise. Neither party can take it without the other's written agreement or a court order; a deposit dispute can freeze the money for months.
When you get it back
| Situation | Deposit |
|---|---|
| Deal closes | Credited to your purchase price |
| A condition (financing, inspection, status certificate) is not satisfied and you give notice in time | Returned in full, both parties sign a mutual release |
| Seller cannot close (title problem, breach) | Returned, and you may have a claim for damages |
| You walk away from a firm deal | Forfeited; seller may also sue for the difference if they resell for less. See What you lose when a deal falls apart |
| Dispute over whether a condition was met | Held until mutual release or court order |
Worked example from the calculator
$750,000 purchase, 10% down, Ontario, offer accepted Thursday 9 pm:
| Item | Amount / date |
|---|---|
| Deposit due | 5%: $37,500, by Friday 9 pm (24 hours) |
| Bank draft drawn | Friday morning from chequing |
| Balance of down payment due at closing (60 days later) | $37,500 |
| Closing costs due at closing (first-time buyer) | ≈ $13,100 |
| Cash required at closing after deposit | ≈ $50,600 |
Frequently asked questions
How much deposit do you need to buy a house in Canada?
No fixed rule. 5% of the price is typical in Ontario; competitive markets see 5% to 10%; smaller markets and provinces often use $5,000 to $25,000 flat. It is negotiated in the offer.
Is the deposit part of the down payment?
Yes. It is credited toward the purchase price at closing, reducing the cash you bring then.
What happens to my deposit if my financing falls through?
If your offer had a financing condition and you gave notice within the condition period, the deposit is returned. If the offer was firm, it is forfeited.
Can I pay the deposit by e-transfer?
Rarely — limits are too low and brokerages require certified funds. Plan for a bank draft or wire.
Does the deposit earn interest?
Only if the offer specifies an interest-bearing trust account; most do not, and the interest is negligible at typical amounts and timelines.
Sources
- Ontario Real Estate Association, Agreement of Purchase and Sale (Form 100) — deposit clause — checked 14 Sept 2026
- Real Estate Council of Ontario, deposits and trust accounts — checked 14 Sept 2026
- BC Financial Services Authority, deposits in real estate transactions — checked 14 Sept 2026
This is general information for Canadian home buyers and sellers, checked against the sources listed above on the date shown. It does not constitute legal, tax, or mortgage advice. Because rules and rates change, confirm current figures with your lawyer or notary, your lender, or the government office that administers the tax before you rely on them.