Buying a home for the first time? It’s an exciting milestone. It can also feel a little overwhelming. The numbers can be big, things can feel complicated, but you’re not alone.
And once you have an accepted offer, the next major step in the process is to provide the deposit. Well, what happens then?
In this guide, we’ll break down everything that buyers in Metro Vancouver need to know about deposits.
By the end you’ll know what they are, how they work, and what to expect, so you’ll be ready every step of the way when buying.
The Basics: What is a Deposit?
The deposit is an upfront payment made after your offer is accepted. It’s later applied to your total down payment when the deal closes.
When you’re buying a home, the deposit is your way of saying, “I’m serious.”
The down payment is the total amount you’re putting toward the home, typically with a mortgage to cover the rest.
In short, the deposit is a portion of that down payment, paid early to secure the deal and lock in the contract.
How Does a Deposit Work?
Let’s break it down with an example.
Imagine you’re buying a condo in Metro Vancouver for $767,300 (the benchmark price as of March 2025). If you and the seller agree on a deposit of 5%, you’ll need to pay $38,365 upfront.
This amount will go toward your overall down payment, which is typically between 5% and 20% of the condo’s price, depending on your financial plan.
When Is the Deposit Due?
Your deposit is due very quickly after your offer is accepted by the sellers. The exact timeline will be in your offer documents. With most agreements setting a deadline of 24 to 72 hours from acceptance.
It’s important to have the funds ready, because delays could risk you losing your offer or even result in penalties. Your Realtor will make sure you hit these deadlines so you can get your home.
Typical Timeline for Providing the Deposit
Have an accepted offer? Time to celebrate and keep moving the deal forward. The next step is to submit your deposit, which happens quickly. Here’s a breakdown of what to expect:
Step 1: Submit Your Deposit (Day 0–Day 2)
The seller’s acceptance of your offer (Day 0) kicks off the deposit process.
In most cases you’ll need to send the deposit within 24–48 hours of the offer being accepted (Day 1–Day 2). Timing is key here. Delays could risk voiding your agreement or weakening your position.
Step 2: How Much Should You Deposit?
Deposit amounts depend on local real estate practices and the home’s price, but they typically range from 1–5% of the purchase price.
Your Realtor will confirm the exact amount right after the offer is accepted, so you’re prepared to pay within the first two days.
However, this should be known by the calculations your mortgage broker can provide you as you work together on the finances of the deal.
Step 3: Where Does the Deposit Go?
Once paid (Day 1–Day 2), your deposit is usually handed over to your agent or their brokerage by Day 3. From there, it’s securely held in a trust or escrow account. You’ll also receive confirmation or a receipt for the payment. This makes sure that the money is safe and properly managed. So both buyers and sellers are protected throughout the transaction.
How Much Will the Deposit Be?
The deposit for buying a home in Metro Vancouver usually falls between 5% to 10% of the purchase price, depending on the agreement between the buyer and seller. To give you an idea, here’s what a 5% deposit looks like based on March 2025 benchmark prices:
Detached Homes
Average price = $2,034,400
5% deposit = $101,720
Attached Homes (e.g., townhouses)
Average price = $1,113,100
5% deposit = $55,655
Apartments/Condos:
Average price = $767,300
5% deposit = $38,365
Can the deposit amount change?
Absolutely. While 5% is common, it’s not a hard rule. In today’s competitive market, offering a higher deposit can give you an edge and show the seller you mean business. You can use this to your advantage to get your offer accepted, if needed. Your Realtor will be able to advise you if this is a good strategy to follow.
How Do You Pay the Deposit?
When it comes to paying your deposit, preparation is everything. The deposit secures the property and shows the seller you’re serious, so having the funds ready to go is key.
Here’s a quick guide to make the process smooth:
Common Deposit Payment Methods to Know
Before you prepare your deposit, you need to understand common methods to prepare for that. There are two common methods:
Bank Draft or Certified Cheque (Preferred): These are the most secure and commonly accepted methods. They give sellers confidence and help avoid delays. Simply head down to your bank and get a bank draft. If you need multiple drafts, that’s typically fine.
Wire Transfer: Some brokerages accept wire transfers, but they’re less common and may take longer to process. Always double-check with your agent or brokerage first. These can take several days, so if you are using a wire transfer, make sure that it’s initiated well in advance.
Steps to Prepare Your Deposit
- Know the Amount and Timeline: Your Realtor can confirm the deposit amount and when it’s due. This is typically outlined in the Offer to Purchase.
- Consolidate Your Funds: If your deposit is spread across multiple accounts, like an RRSP, FHSA, TFSA or other type of account, you’ll want to make arrangements for proper transfers ahead of time. This makes it easier to get a bank draft or cheque without delays or hiccups.
- Get Your Bank Draft or Certified Cheque: Visit your bank to prepare the payment. Have the deposit amount and payee details ready. Remember, once you have the cheque, it’s like real cash so don’t lose it! .
- Plan for Wire Transfers, If Needed: If using a wire transfer, get the required banking details (like account and routing numbers) from the brokerage. Confirm processing times with your bank in advance.
- Keep Proof of Payment: Always save a copy of your receipt or transaction details. You may need it for record-keeping or in case of any issues.
What Happens if You Don’t Pay the Deposit?
Not paying your deposit on time once your offer is accepted can cause serious problems.
Once you and the seller sign the purchase agreement, it becomes a legally binding contract. So, if the deposit isn’t paid on time, you could face the following consequences:
1. Legal Consequences
Firstly, missing the deposit deadline is a breach of contract. This gives the seller the right to seek compensation for damages. For example, if your offer is accepted and they remove the listing and you back out, you could be sued for potential damages due to any financial losses the seller takes on.
2. Risk of Losing the Property
If the deposit isn’t paid, the seller has the right to cancel the agreement and put the property back on the market. This leaves you without a home and back to searching for your next opportunity.
3. Damage to Your Reputation
Failing to meet contractual obligations can harm your reputation as a buyer. This is especially important if you’re working with the same Realtor or competing in a tight real estate market.
Keep in Mind… The Home Buyers Recession Period
Keep in mind that there is the BC Home Buyers Recession Period. Where buyers have a 3-day cooling period whereas if they don’t move forward with the deposit or deal, you’re charged a 0.25% recession fee.
Stay Organized and Proactive
By staying on top of your deposit timeline and being proactive, you can avoid unnecessary stress and setbacks. Purchasing a home is one of the biggest investments you’ll make, so taking these simple steps will help ensure a smoother transaction. Focus on the exciting milestone of securing your new home!
If you’re ready to take the next step, connect with an experienced Realtor to guide you through the process. For more tips on buying your first home in BC, subscribe to our newsletter or check out our additional resources!Deposit On A House in BC: Guide for New Home Buyers
