new build
New-build deposits in Edmonton, explained
How builder deposits work in Edmonton. When they are due, how they count toward your down payment, how they are protected and what to ask before you sign.
Co-Founder / Owner, October 27, 2026
When you buy a new home from an Edmonton builder, you do not hand over your whole down payment at once. You pay deposits on a schedule set in the builder's purchase agreement, and the rest of your down payment and the mortgage come at possession. Every dollar of deposit counts toward your down payment. The questions that matter are how much, when, and what protects that money while the home is being built.
We spent years on the builder side writing these agreements. Here is what to look for.
How a deposit schedule works
In our experience on the builder side, most Edmonton builders follow a similar pattern: a small deposit when you sign, a larger one when you remove your conditions, and a third about 60 days after signing or when construction starts. Deposits usually stop at 10% of the price. If you are putting down more than that, the rest is paid in cash at closing. The amounts and timing are set by each builder and written into the agreement, so yours may differ.
Here is how that typically looks on a $500,000 home.
When you pay your down payment
| Down payment | At signing | At condition removal | 60 days or housing start | Cash at closing |
|---|---|---|---|---|
| 5% ($25,000) | $1,000 | $24,000 | none | none |
| 10% ($50,000) | $1,000 | $24,000 | $25,000 | none |
| 15% ($75,000) | $1,000 | $24,000 | $25,000 | $25,000 |
| 20% ($100,000) | $1,000 | $24,000 | $25,000 | $50,000 |
Your mortgage at possession
| Down payment | Mortgage | CMHC premium | Total mortgage |
|---|---|---|---|
| 5% | $475,000 | $19,000 (4.00%) | $494,000 |
| 10% | $450,000 | $13,950 (3.10%) | $463,950 |
| 15% | $425,000 | $11,900 (2.80%) | $436,900 |
| 20% | $400,000 | none | $400,000 |
With less than 20% down, your mortgage has to be insured. The premium is added to the mortgage, not paid in cash, and Alberta charges no sales tax on it. The rates shown are CMHC's standard premiums for a 25-year amortization; a 30-year amortization adds 0.20 percentage points.
Keeping more of your money until closing means less of it is tied up while the home is built. Every deposit counts toward your down payment. Enter the numbers from your own agreement in our deposit schedule tool to see your timeline.
Quick possession or pre-sale
Quick possession homes are already started or finished, so possession is typically 30 to 90 days away. The deposit schedule is short, often just one or two payments, and it can be part of the negotiation, especially as the home nears completion.
Pre-sales can be many months from possession. You will usually pay more of your down payment in deposits along the way, and your money is committed for longer. Plan for that before you sign, particularly if part of your down payment is coming from the sale of your current home.
How your deposit is protected
This depends on what you are buying, so ask before you sign.
- Condominiums. Alberta's Condominium Property Act requires a developer to hold a buyer's deposit in trust. Since 2018, deposits on new condos go to the developer's lawyer, who must hold them in a trust account and notify you that they have been received.
- Houses and duplexes. Alberta's New Home Buyer Protection Act makes the new-home warranty mandatory, but it does not make deposit protection mandatory. Many builders include deposit or pre-possession protection through their warranty provider or another product. Ask the builder, in writing, what protects your deposit and up to what amount.
Have your own lawyer read the agreement before it goes firm. Look for who holds the deposit, whether it is held in trust, and what happens to it if the builder cannot finish the home.
What happens if you cannot close
Read the default clause. If the buyer fails to complete the purchase, builder agreements commonly let the builder keep the deposits, and some allow the builder to claim more if they have to resell for less. That is why the size and timing of your deposits matter. Only commit money you are confident you will not need before possession.
Your mortgage and the timeline
On a pre-sale, many banks will need to redo your mortgage approval close to possession. That can work in your favour if rates have come down, or against you if they have gone up.
If there is any chance your income, debts or employment could change during the build, look for a lender that will hold your approval all the way through to possession, such as RBC. Either way, avoid taking on new debt until you have the keys. On a quick possession, your mortgage approval and the deposit schedule run on the same short timeline.
If you are building a custom home on your own lot, the money works differently. A draw mortgage releases funds to the builder at construction stages, usually after an inspection at each stage, and you pay interest only on what has been advanced. The deposit schedule tool can show an example of that too.
GST and closing costs come on top
Deposits are part of your down payment, not extra. GST, closing costs and adjustments are separate:
- Most Edmonton builders quote prices with GST included, net of the regular new housing rebate. Qualifying first-time buyers may get the rest back through the federal First Time Home Buyers GST Rebate.
- Budget for legal fees, Land Titles registration fees and adjustments. Our closing costs guide walks through each one.
Questions to ask before you sign
- How much is each deposit, and exactly when is it due?
- Who holds the deposits, and are they held in trust or insured, up to what amount?
- What happens to my deposits if the builder cannot finish, or if possession is delayed?
- What happens if I cannot close?
- Is the deposit schedule negotiable on this home?
If you are looking at a new build in Edmonton, bring your own REALTOR® on your first showhome visit. We will read the builder's agreement with you, deposit schedule and all, before you sign.
Sources
- Government of Alberta, New home warranty overview: alberta.ca
- CREB, Construction collateral: navigating the deposit process for new-build home purchases: creb.com
- Gowling WLG, Summary of amendments to Alberta condo legislation (2018): gowlingwlg.com