Your offer just got accepted (or you are about to write one) and now someone mentions “the deposit.” Is that the same as your down payment? How much deposit to buy a house in BC is normal, and when is it due? Here is the whole thing in plain terms, with the numbers North Vancouver buyers actually see.
Deposit vs Down Payment: The Difference in Plain Terms
The deposit is the good faith money you hand over shortly after your offer is accepted. It shows the seller you are serious. In BC it is usually around 5% of the price, and it is held in trust until completion day.
The down payment is your total equity in the purchase, the part of the price that is not covered by your mortgage. In Canada that is at least 5% on the first $500,000, 10% on the portion up to $1.5 million, and 20% on homes over $1.5 million.
The key thing: the deposit is part of your down payment, not extra money. You are simply paying a piece of it early.
| Deposit | Down payment | |
|---|---|---|
| What it is | Good faith money with the offer | Your full equity in the home |
| Typical size in BC | about 5% of the price | 5% to 20% plus, depending on price |
| When you pay | Usually within 24 hours of subject removal or acceptance | On completion day (minus the deposit already paid) |
| Who holds it | Listing brokerage’s trust account | Goes to the seller through the lawyers on completion |
| Refundable? | Yes, if a subject is not met; usually no once the deal is firm | Not applicable |
How Much Deposit to Buy a House in BC: What’s Normal in North Vancouver
There is no legal minimum in BC. The number is written into the contract and agreed between you and the seller. That said, when people ask how much deposit to buy a house in BC they should plan for, 5% of the price is the standard most North Shore agents expect.
What that looks like in real dollars:
| Purchase price | 5% deposit |
|---|---|
| $700,000 condo | $35,000 |
| $1,250,000 townhome | $62,500 |
| $2,100,000 detached home | $105,000 |
| $3,500,000 detached home | $175,000 |
A few things move the number up or down:
- Higher price points. On homes well above $3 million, some sellers are fine with a flat $100,000 to $250,000 instead of a full 5%.
- Market pressure. In a busy spring market with multiple offers, sellers want a strong, fast deposit. In a slower market like much of 2026, you have more room to negotiate.
- Presales. New construction works differently. Deposits are often 10% to 20% of the price, paid in stages over months. See our presale real estate services in North Vancouver if you are looking at new builds.
When the Deposit Is Due and Who Holds It
The contract spells out when the deposit is due, and there are three common setups in BC:
- Within 24 hours of subject removal. This is the most common and most buyer friendly structure. You only hand over money once you are firm.
- Within 24 hours of acceptance. More common in competitive situations, especially offers without subjects.
- After the rescission period. Some contracts set the deposit for after the 3 business day Home Buyer Rescission Period ends.
The deposit is normally paid to the listing brokerage, which must place it in its trust account. It is not the seller’s money yet, and the seller cannot touch it until completion. You usually pay by bank draft or electronic transfer, and your agent will send you instructions.
A quick tip: make sure the money is liquid and ready before you write the offer. If it is sitting in a locked GIC or an investment account that takes three days to sell, a 24 hour deadline gets stressful fast.
Does the Deposit Count Toward Your Down Payment? (Yes, and Here’s How)
Yes. On completion day, your lawyer or notary credits the deposit against the purchase price, and you only bring the rest.
A simple example on a $1,250,000 townhome with 20% down:
| Item | Amount |
|---|---|
| Purchase price | $1,250,000 |
| Total down payment (20%) | $250,000 |
| Deposit paid after subject removal | $62,500 |
| Down payment still owed on completion | $187,500 |
| Mortgage | $1,000,000 |
Remember that closing costs are separate. You will still need money for Property Transfer Tax, legal fees and adjustments on top of the down payment. Our Property Transfer Tax guide for BC buyers shows exactly what you will pay at different prices.
What Happens to the Deposit If You Walk Away After Subject Removal
This is the part to take seriously.
Before subject removal: if a subject is not satisfied (financing falls through, the inspection turns up a problem, strata documents look bad), you can walk away and your deposit comes back to you in full. That is exactly why subjects exist. A low appraisal is one of the most common reasons, which is why a subject to financing should cover the appraisal too. If you are unsure what to include, read our guide on contract conditions when buying a home in BC.
During the rescission period: most residential offers in BC come with a 3 business day cooling off period after acceptance. You can cancel for any reason (see BCFSA’s rescission period rules), but you owe the seller a fee of 0.25% of the price. On a $1.25 million home that is $3,125, usually taken out of the deposit if it has been paid.
After subject removal: the deal is firm. If you back out now, you will almost certainly lose the deposit, and the seller can also sue you for more if they end up selling for less. Example: you back out of a $1.25 million deal, forfeit your $62,500 deposit, and the seller later sells for $1.18 million. They can claim the $70,000 difference plus their extra costs, minus the deposit they already kept.
Never remove subjects unless your financing is confirmed in writing and you are sure you can close.
How Deposit Size Affects a Multiple Offer Situation
When a seller has three or four offers on the table, price is not the only thing they look at. A bigger, faster deposit tells them you are committed and financially ready.
What tends to strengthen an offer:
- A deposit at or above 5%
- Delivered within 24 hours of acceptance rather than after subject removal
- Paired with a clean offer or short subject periods
But be careful. A larger deposit paired with a subject free offer puts real money at risk if something goes wrong. Before you go all in, make sure your pre approval is solid, you have seen the strata documents, and you have had a pre offer inspection where possible. Our guide on how multiple offers work in BC goes deeper on strategy.
Frequently Asked Questions
Can I pay the deposit with a credit card?
No. Deposits are paid by bank draft, certified cheque or electronic transfer to the brokerage’s trust account.
Do I earn interest on my deposit?
Usually not in any meaningful amount. Brokerage trust accounts earn very little, and the contract usually says who gets any interest.
Can the seller keep my deposit if my financing falls through?
Not if financing was a subject and you did not remove it. If you already removed subjects, yes, they can.
Can my deposit be a gift from family?
Yes, but your lender will want a signed gift letter and proof of the funds moving through your account.
Is a 5% deposit required by law?
No. It is a common practice, not a rule. You can offer less, but a small deposit can make your offer look weaker.
What if the seller backs out?
If the seller fails to complete, your deposit is returned and you may have a claim against them for damages.
Can I use my FHSA or RRSP for the deposit?
Yes, as long as the withdrawal rules are followed and the money arrives in time. Plan ahead, because withdrawals can take several days.
Who gets the deposit if there is a dispute?
The brokerage holds it until both parties agree in writing or a court decides.
Writing an Offer This Weekend? Let’s Size the Deposit Right
Getting the deposit right is part strategy, part protection. Too small and your offer looks soft next to the others. Too big, too early, and you are exposed if something goes sideways.
Navid Hakimi helps North Vancouver buyers set the deposit, timing and subjects so the offer is strong without putting your money at unnecessary risk. He will also check that your financing and paperwork are lined up before you commit. Talk to Navid before you write your offer, especially if you expect competition.
Current as of September 2026. This is general information, not legal advice. Your lawyer or notary can confirm how the deposit clause works in your contract.
