BUYING IN BC
Deposit vs down payment in BC
Yes, your deposit counts toward your down payment. It is not an extra cost on top. But they are not the same thing, they are due at completely different times, and only one of them can be tied up for months if a deal goes sideways.
The deposit is usually around 5% of the price and it is due within 24 hours of your offer being accepted. The down payment is the full amount you are putting in, and the rest of it is not needed until completion, which is normally 30 to 60 days later. The deposit gets credited against it.
That timing gap is where first-time buyers get caught. People arrange their money for completion day and then discover they need five figures liquid tomorrow.
A worked example
On a $600,000 purchase with 10% down:
- Your down payment is $60,000
- Your deposit is roughly $30,000, in trust within 24 hours of acceptance
- The remaining $30,000 goes to your lawyer or notary before completion
You have not spent $90,000. You have spent $60,000, in two instalments, and the first one moves fast.
If your money is sitting in a locked-in GIC, or it is coming from a relative, or it is in an account that caps transfers, sort that out before you write an offer. Not after.
Where the deposit actually goes
It does not go to the seller. It goes into a brokerage trust account, and under the Real Estate Services Act the brokerage holds it as a stakeholder, meaning it is held for the benefit of both parties rather than either one of them.
This matters more than it sounds. The brokerage is not the seller’s agent when it comes to that money. It cannot hand the deposit over because one side is annoyed, and it cannot give it back to you because you changed your mind.
What happens if the deal falls apart
If the sale does not complete, the brokerage cannot release the deposit until every party signs an agreement saying where it goes. If the two sides do not agree, the brokerage can apply to pay the money into the BC Supreme Court and let a judge decide.
That is the part people do not expect. A disputed deposit is not a phone call, it is a legal process, and your money sits still while it runs.
There is one exception, and it is worth knowing.
The three day rescission period
Since 2023, BC buyers of residential property have a Home Buyer Rescission Period: three clear business days after an accepted offer in which you can cancel the contract. Weekends and holidays do not count, and the clock starts the day after both sides have accepted.
It is not free. The rescission fee is 0.25% of the purchase price, paid to the seller. On a $600,000 home that is $1,500.
Neither side can waive it. It is a right you have whether anyone mentions it or not.
It does not apply to everything. Property on leased land, leasehold interests, homes sold at auction, and sales under court order or court supervision are all exempt. A presale bought from a developer’s disclosure statement sits under different legislation with its own, longer cancellation right.
I would not treat this as a plan. Three days is not enough time to arrange financing or get an inspection done properly, and it costs you real money to use. It is a backstop for a genuine change of circumstances, not a substitute for writing a careful offer in the first place.
Why the answers you find online are usually wrong
Search this question and most of what comes back is American. You will see “earnest money” and “escrow” everywhere.
Neither exists here. In BC there is no escrow company holding your funds. Your deposit sits in a brokerage trust account under provincial legislation, the release rules are the ones above, and the rescission period is a BC statute with no American equivalent. The three day cooling off period is not a thing in most US states at all.
If you are reading a US source, the numbers, the timelines and the protections are all different. This is one of the places where a confident generic answer will cost you.
How much deposit is normal
Around 5% is the common shape in the Central Okanagan, but it is negotiable and it is a real part of the offer, not a formality. A larger deposit signals you are serious and can make a competitive offer stronger. A smaller one keeps more of your cash accessible while the deal is still conditional.
That is a judgement call that depends on how contested the property is and what your financing looks like. It is one of the terms I work through with buyers before we write, alongside the dates and the conditions, and it is covered in more detail in how I represent buyers.
What to actually do
- Know what your deposit will be before you write. Roughly 5% of what you are offering.
- Have it liquid. Not committed, not in transit from somewhere else, not requiring someone else’s signature.
- Ask where it is being held, and get the trust receipt.
- Read the deposit clause. Amount, deadline, and who holds it are all negotiable terms in the contract, not fixed rules.
If you are earlier than this and still working out the whole sequence, the first-time buyer’s guide has the seven steps in order along with the programs and closing costs. If you want to know how I work before you get to any of it, that is on my background.
This is general information about how deposits work in British Columbia, not legal advice. The Home Buyer Rescission Period, the rescission fee and the exemptions above are as of September 2026, and deposit handling is governed by the Real Estate Services Act. Legislation changes, so check the current rules before you rely on any of it. Your contract governs your own transaction, and a lawyer or notary is the right person to read it with you. Braden Koop Personal Real Estate Corporation operates under RE/MAX Kelowna.
