Buying a presale condo in Vancouver: deposits, the appraisal gap, and cash on completion

Updated November 13, 2026 · 517 words

Buying a presale condo in Metro Vancouver means signing a contract today for a home you'll get the keys to in two to four years. The price is fixed at signing. Almost everything else, including your income, interest rates, and what the unit will appraise for, can change before completion.

This guide follows an $800,000 presale from the first deposit to the completion day, and shows the three numbers buyers most often underestimate: the deposit schedule, the appraisal gap, and the cash due on the last day.

Building Construction — A presale contract fixes the price years before the building is finished.

The deposit schedule

Most Vancouver presales ask for 10% to 20% of the price in deposits, paid in steps. A common structure is 5% at signing, 5% within 90 days, and further 5% instalments later in construction.

Step chart of a 20% deposit on an $800,000 presale: $40,000 at signing, $80,000 total at 90 days, $120,000 at 12 months and $160,000 at 24 months, with completion at month 36 — By the time the building tops out, this buyer has $160,000 committed.

When	Deposit	Total paid
Signing	$40,000	$40,000
90 days	$40,000	$80,000
12 months	$40,000	$120,000
24 months	$40,000	$160,000

Under BC's Real Estate Development Marketing Act, deposits are held in trust, and buyers get a seven-day rescission period after signing to back out. Use those seven days to read the disclosure statement and to get a mortgage pre-approval that covers completion.

The appraisal gap

At completion, the lender appraises the unit. It will usually lend against the lower of the contract price and the appraised value. If the market has fallen, the buyer has to cover the difference in cash.

Bar chart of extra cash needed at completion for an $800,000 presale with a 20% deposit: $96,000 if it appraises at $680,000, $64,000 at $720,000, $32,000 at $760,000 and nothing at $800,000 or above — A 5% drop in value costs this buyer $32,000 of extra cash on completion day.

Each 5% fall in the appraisal adds about $32,000 to the cash needed on completion day. If prices rise, the buyer keeps the gain, but the lender still lends against the contract price.

Cash on completion day

Bar chart of the cash a buyer brings to an $800,000 presale: the $160,000 deposit already paid, $40,000 GST, $14,000 property transfer tax without an exemption and $3,500 of legal fees, adjustments and strata set-up, about $218,000 in total — GST is the cost that surprises resale buyers moving into new construction.

GST: new homes carry 5% GST. Check whether a federal or provincial rebate applies to your price and situation.
Property transfer tax: a newly built home used as a principal residence can qualify for a full or partial PTT exemption under a price threshold.
Strata set-up: the first month of strata fees and a contribution to the contingency reserve fund are often due on completion.

Construction Blueprint — Read the disclosure statement and any amendments before the rescission period ends.

Before you sign

Stress-test completion, not today. Ask what happens to your approval if rates are a point higher in three years.
Compare with resale. Look at what similar finished units in nearby buildings sold for recently. EstateBlock's guide to buying a presale condo in Vancouver explains assignments, deposits, and how to compare a presale with resale sold prices.
Read the assignment clause. Some developers restrict or charge fees for assigning the contract before completion.
Keep a cash buffer of at least 5% of the price for an appraisal shortfall.

Quick answers

Is my deposit safe if the developer goes bankrupt? Deposits are held in trust or covered by deposit protection insurance under BC rules, but recovering them can take time.

Can I sell before completion? Usually through an assignment, if the contract allows it. Assignments are taxed and reported like other property sales.

Sources and further reading

Government of British Columbia: Real Estate Development Marketing Act
Government of British Columbia: Property transfer tax exemptions

Hypothetical figures. General information only, not legal or tax advice.

Photos (CC0): Building Construction by %u8D1D%u8389%u513F%20NG; Construction Blueprint by Burst.