Question: When do I have to pay the deposit when I am purchasing a pre-construction condo through the developer?
Every condominium project in Ottawa will have a different deposit structure, however the typical deposit required is 20% paid in four instalments.
Example based on a $350,000 purchase price:
At time of signing - $5,000
30 days from signing - Balance up to 5% - $12,500
90 days from signing - Another 5% - $17,500
180 days from signing - Another 5% - $17,500
Occupancy - Another 5% - $17,500
Total paid is the 20% deposit which (based on $350,000 purchase price) is $70,000.
Keep in mind that every condo development is different, and the deposit structure even might change from initial launch to nearing completion. Builders typically require higher deposits at the beginning of a project, as the bank that is financing the building will have set out requirements in order to start construction. As the project gets underway, the developer typically has more room to negotiate amounts and dates, with extensions or even reducing the amounts.
Have a question about deposits or purchasing a pre construction condo here in Ottawa? I would love to chat!