Home Buying Deposits in BC: How They Work and What to Expect

When you buy a home, one of the first major steps you’ll face is paying a deposit. And for many buyers, this is where the questions start. When is it due, how much is normal, and where does it actually go?

Let me walk you through it.

When your deposit is due

In British Columbia, the deposit timing is negotiated as part of the Contract of Purchase and Sale. Most commonly, the deposit is due after you remove subjects and conditions, because that’s the moment you’re officially committing to the purchase.

That timing matters. It’s designed to confirm you’re serious and to secure the deal once conditions are removed. In some cases, a deposit (or part of it) can be due earlier, but that’s something we’d negotiate and make crystal clear in the contract.

How much the deposit usually is

There’s no single fixed rule, but in many BC transactions deposits commonly fall in the 5% to 10% range of the purchase price. The exact amount depends on the price point, the competitiveness of the home, and what the seller expects in that specific market.

You might also hear the term “non-refundable deposit.” In practice, deposits are generally refundable if the contract doesn’t firm up or if the deal collapses under specific circumstances, but once you remove conditions, the deposit is typically at risk if you default. Any “non-refundable” language needs to be handled carefully and reviewed so you understand exactly what you’re agreeing to.

What happens to your deposit

Your deposit is not an extra fee. It’s credited toward your purchase on completion. Most buyers use it as part of their down payment, and then the remaining balance is covered by their mortgage lender and their own funds.

What this means for you: the deposit is part of the bigger down payment plan, so it’s important to coordinate timing with your lender or mortgage broker so you’re not cash-tight at the wrong moment.

Who holds the deposit and how it’s paid

Deposits are typically held in trust, most often by the listing brokerage (sometimes by the buyer’s brokerage depending on the agreement). This is done to keep the funds secure and properly handled until completion or until the contract directs otherwise.

Payment is usually by bank draft or wire transfer, and the trust account process helps ensure the funds aren’t released without proper authorization.

Why the deposit matters

A deposit is more than money up front. It shows good faith to the seller, helps protect both parties during the transaction, and strengthens your position as a serious buyer, especially in competitive situations.

Final thoughts

If you’re early in the process and you want to understand what a realistic deposit looks like for your price range, I’m happy to walk you through it and help you plan the timing so nothing feels rushed or stressful.

Erin Price Emery
Vancouver REALTOR® | The Collective Real Estate Team | Oakwyn Realty
erin@priceemery.com
Call or text: 604-767-7725
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