When buying a pre-construction home in British Columbia, deposit structures can vary significantly by market. One of the most notable differences buyers encounter is between Victoria and larger urban centres like Vancouver.
How Deposit Structures Work in Victoria
In Victoria, developers commonly use staged deposit structures. Rather than requiring a large sum up front, deposits are spread out over key milestones in the construction process. A typical structure may look like:
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5% due at contract writing
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5% due once the contract becomes firm
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5% due at a later construction milestone, such as framing
This approach allows buyers to plan their finances more strategically and reduces the immediate cash burden at the time of purchase.
How This Differs From Other BC Markets
In markets such as Vancouver, deposits are often larger and required earlier in the process. It’s not uncommon to see higher upfront deposits with fewer stages, which can put pressure on buyers to have significant capital available right away.
Why This Matters for Buyers
Understanding deposit structures is essential for managing cash flow during a multi-year build. Staged deposits can make homeownership more accessible and predictable, especially for first-time buyers or those coordinating funds from multiple sources.
Before committing to any pre-construction purchase, it’s important to review the deposit schedule carefully and understand how it aligns with your financial plan. Working with a local presale specialist ensures there are no surprises along the way.
