Deposit vs. Down Payment: A Saskatchewan Buyer's Guide
What's the difference between a deposit and a down payment in Saskatchewan? The deposit is good-faith money you pay shortly after your offer is accepted, held in trust. The down payment is your total cash toward the price, and the deposit counts toward it: the rest is paid through your lawyer at possession. In Canada the minimum down payment is 5% of the first $500,000.
Updated November 2026 by Clayton McNally & Jessica Hamel, REALTORS®, RE/MAX Saskatoon
What's the Difference Between a Deposit and a Down Payment?
The deposit is the first piece of your down payment, paid early to show you're serious. People often use the terms interchangeably, but confusing them can lead to real surprises on possession day.
| Deposit | Down payment | |
|---|---|---|
| What it is | Good-faith money with your offer | Your total cash toward the price |
| When it's paid | Shortly after your offer is accepted | Balance due on possession, through your lawyer |
| How much | Negotiable | At least 5% of the first $500,000 |
| Where it's held | In trust by the brokerage or a lawyer | Paid to your lawyer to close |
| Can you lose it? | Yes, if you back out of a firm deal | — |
How Does a Deposit Work in Saskatchewan?
It shows the seller you're committed, and it's held in trust until closing. Here's what you need to know:
- The amount is negotiable. There's no fixed rule for how much your deposit must be — it's agreed between buyer and seller.
- It's held in trust. Your deposit is held in a trust account by the brokerage or a real estate lawyer — not by the seller directly — until the transaction closes.
- Timing matters. The deposit is typically paid shortly after your offer is accepted, so keep these funds readily accessible, not locked in GICs or other investments.
- It may be refundable. If your deal falls through during the conditions period — for example, if your financing isn't approved or the home inspection reveals serious issues — your deposit is generally returned to you.
- It can be forfeited. If you back out of a firm deal (one with no remaining conditions) without a valid legal reason, you risk losing your deposit. Never go firm unless you're fully committed.
A real example from our files: Last month, a set of our buyers thought they had found their dream home, but the home inspection uncovered a very big problem with the property. Because we had written the contract to protect their best interests, they were able to walk away with no loss, and we went on to find them the right property. That's what your conditions are for.
How Much Down Payment Do You Need?
At least 5% of the first $500,000. Canada's minimum down payment rules, which apply in Saskatchewan, are:
- 5% of the first $500,000 of the purchase price
- 10% of the portion between $500,000 and $1.5 million
- 20% for homes priced at $1.5 million or more
If your down payment is less than 20% of the purchase price, you'll need mortgage default insurance (from CMHC or another insurer). It protects the lender — not you — if you can't make your payments, and the premium is added to your mortgage. Our Saskatoon mortgage calculator shows your minimum down payment, insurance premium and monthly payment for any price. Rules can change, so confirm the current requirements with your mortgage professional.
Is the Deposit Extra, or Part of the Down Payment?
Part of it. This surprises many first-time buyers: your deposit is not an additional cost on top of your down payment — it counts toward it. For example:
- Total down payment required: $30,000
- Deposit paid with your offer: $10,000
- Remaining balance due at closing: $20,000
Your deposit sits in trust and is applied to your down payment at closing. You're not paying $30,000 plus a deposit. Remember to budget separately for closing costs like legal fees, title transfer fees and adjustments, which are on top of your down payment.
Where Can Your Deposit and Down Payment Come From?
Several sources, as long as your lender can verify them:
- Personal savings — the most straightforward source
- Gifted funds from immediate family — lenders will typically require a signed gift letter
- Proceeds from a previous home sale — common for move-up buyers (our Buy or Sell First tool helps with timing)
- The FHSA and RRSP Home Buyers' Plan — first-time buyers may be able to use both. See all the Saskatchewan home buyer incentive programs.
Your lender will want to document where your funds come from, so keep records organized. A full pre-approval gets that paperwork done before you start shopping.
Do You Need a Real Estate Lawyer?
Yes. A qualified Saskatchewan real estate lawyer makes sure both your deposit and your final down payment are handled correctly, that the title transfer is clean, and that you're protected on possession day. If you don't know one, we can connect you with lawyers we trust.
Ready to Start Your Home Search?
Knowing what's expected — and when — puts you in a much stronger position when it's time to make an offer. Our free Saskatoon Home Buyer's Guide walks through every step, including closing costs, and our First-Time Buyers page brings it all together.
Start your search today, and when you're ready to talk strategy, talk to Clayton and Jessica, your trusted REALTORS®: call or text Jessica at 306.241.6029 or get in touch here.
