Buyer Advice · Tri-Cities Real Estate
How Much Deposit Do You Need When Making an Offer in the Tri-Cities?
One of the most common points of confusion for buyers — especially those purchasing for the first time — is the difference between a deposit and a down payment. They are not the same thing, and mixing them up can lead to real surprises when you are sitting at the offer table. If you are preparing to buy a home in Coquitlam, Port Moody, or Port Coquitlam, understanding how deposits work in BC is essential before you write your first offer. This guide walks you through exactly what a deposit is, how much is customary in the Lower Mainland, when it must be paid, where the money goes, and — critically — what happens to it if you decide to walk away after your conditions are removed. For a broader look at the purchase process, the home buyers guide on this site covers each step from search to completion. Browse current Tri-Cities listings →
In BC, a deposit is the good-faith sum a buyer puts forward when making an offer to purchase a home. It signals to the seller that you are a serious buyer, not someone window-shopping. The deposit is held in trust — typically in the listing brokerage’s trust account — and it is credited directly toward your total purchase price at completion. So if you pay a $50,000 deposit and your purchase price is $1,000,000, your deposit is counted as part of what you owe, reducing the balance due on closing day. No BC law sets a mandatory deposit amount. The figure is negotiated between buyer and seller, and convention in the Lower Mainland — including the Tri-Cities — has settled around 5% of the purchase price. On a $900,000 home, that works out to $45,000. On a $700,000 condo, you are looking at roughly $35,000. Sellers and their agents use the deposit size as a signal of buyer commitment, so coming in well below the customary 5% on a competitive offer can raise flags. In multiple-offer situations, some buyers offer a higher deposit to strengthen their position. Timing matters as much as the amount. In the vast majority of Tri-Cities transactions, the deposit is due within 24 hours of subject removal — that is, within one business day of the buyer waiving or satisfying all conditions (subjects) in the contract, such as financing approval and a satisfactory home inspection. Until subjects are removed, the deposit may not yet be in the trust account; the exact timing is spelled out in your Contract of Purchase and Sale. Once the deposit lands in trust, it stays there until completion, at which point it flows to the seller as part of the purchase funds. It is worth pausing here to clarify what a deposit is not. It is not your mortgage down payment, even though both come out of your own pocket. Your down payment is the equity portion you are contributing to the purchase — the amount not covered by your mortgage. Depending on purchase price, BC buyers must meet federally regulated minimum down-payment thresholds, but that is a separate topic entirely. The deposit is simply a portion of your funds that gets committed early in the transaction to demonstrate good faith. In most cases, your deposit will form part of your down payment at completion, but the two concepts live at different points in the timeline and serve different purposes. For first-time buyers navigating this process, the first-time home buyers guide breaks down the full timeline, including when to have your deposit funds ready and liquid. One practical point: your deposit money needs to be accessible — not locked in a GIC or in an account that requires five business days to transfer. If you need to wire funds or move money between institutions, set that up in advance so that when subjects are removed, you can meet the 24-hour deadline without scrambling.
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This is the question that matters most, and every buyer should understand the answer before they remove subjects. Once you waive your conditions and the contract becomes firm and binding, you are legally committed to completing the purchase. If you back out of a firm deal without a legally valid reason, the seller is generally entitled to keep your deposit as liquidated damages — and may also pursue you for additional losses if your default costs them more than the deposit covers. In practical terms, losing a $40,000 or $50,000 deposit is a very real and very painful outcome. This is why experienced buyers in the Tri-Cities treat subject removal as a genuine decision point, not a formality. Make sure your financing is solid, your inspection is complete, and you are truly ready to proceed before you sign off on those conditions.
If the contract contains conditions — such as a financing condition or a home inspection condition — and you exercise one of those conditions to void the contract within the allowed timeframe, you are entitled to your deposit back. In BC, the deposit is typically returned to the buyer without penalty when the deal is cancelled in accordance with the contract terms before subjects are removed. The brokerage holding the deposit in trust will release it back to the buyer once the mutual release paperwork is signed by both parties. This protection is precisely why buyers should never agree to remove subjects prematurely or under pressure, and why having well-drafted conditions in your offer matters.
While 5% is the well-established convention across the Lower Mainland, local market conditions can influence what sellers expect or what is strategically wise. In a hot seller’s market with multiple competing offers — which the Tri-Cities experiences periodically — a larger deposit can signal stronger commitment and help your offer stand out when price and terms are otherwise similar. In a slower market where you have more negotiating leverage, a deposit closer to the customary 5% is generally fine. Your REALTOR® will advise you on what is appropriate given the specific property and the current competitive environment at the time you are writing your offer.
BC introduced a Home Buyer Rescission Period (HBRP) — commonly called a cooling-off period — that applies to most residential resale transactions. This gives buyers a short window after an accepted offer to rescind the contract, even without a subject condition, but it comes with a financial penalty: a rescission fee of 0.25% of the purchase price, paid to the seller. This is separate from your deposit. If you rescind during the HBRP, your deposit is returned, but you still owe the rescission fee. If your offer includes subjects, the rescission period generally runs concurrently and is less of a factor, since your subject conditions give you a contractual exit. Use the rescission calculator to see what the 0.25% fee would look like on any purchase price you are considering.
Frequently asked questions
Common questions answered
How much deposit do you need to buy a house in BC?
There is no legally fixed deposit amount in BC. The customary amount in the Lower Mainland — including Coquitlam, Port Moody, and Port Coquitlam — is approximately 5% of the purchase price. This figure is negotiated between buyer and seller and written into the Contract of Purchase and Sale. A seller may accept a lower deposit, and a buyer may offer more to strengthen a competitive offer, but 5% is the widely accepted standard in the Tri-Cities market.
What is the difference between a deposit and a down payment in BC?
A deposit is the good-faith sum paid early in the transaction — typically within 24 hours of subject removal — and held in the brokerage’s trust account until completion. A down payment is the total equity portion of the purchase price you are contributing, as opposed to what your mortgage covers. In most transactions, your deposit forms part of your down payment at completion, but they are different concepts. The deposit is a commitment tool paid at a specific point in the process; the down payment is a financing concept that reflects your total equity contribution.
When is the deposit due in a BC real estate transaction?
In the majority of residential transactions in BC, the deposit is due within 24 hours of subject removal — the moment the buyer waives or satisfies all conditions in the contract and it becomes firm and binding. The exact deadline is specified in the Contract of Purchase and Sale, so always check the wording in your offer. Because the timeline is tight, buyers should have their deposit funds liquid and accessible before they remove subjects.
Can you lose your deposit if you back out of a home purchase in BC?
Yes — if you back out of a firm and binding contract without a legally valid reason, the seller is generally entitled to keep your deposit. Once subjects are removed and the contract is firm, you are legally obligated to complete the purchase. Walking away at that point constitutes a breach of contract, and the deposit is the seller’s primary remedy. The seller may also pursue you for additional damages beyond the deposit if their losses exceed that amount. This risk is exactly why removing subjects should only be done when you are fully committed and your financing is confirmed.
Where is the deposit held during a BC home purchase?
In BC, the deposit is held in the listing brokerage’s trust account. Real estate brokerages are legally required to maintain a separate trust account for client funds, regulated under BC’s Real Estate Services Act. The money sits there — untouched by either party — from the time it is paid until completion, at which point it is applied toward the purchase price. Neither the buyer nor the seller can access the funds during this period without mutual agreement or a court order.
Sebastian Czarkowski
REALTOR® · Royal LePage Elite West · Coquitlam, BC
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For educational purposes only. Not intended as financial or legal advice.
Sebastian Czarkowski, REALTOR® | Royal LePage Elite West | sebastianrealestate.ca