When you buy a new-build home in Edmonton, your deposits are paid to the builder in stages across the build — an initial deposit at contract, further amounts at milestones set in the purchase agreement — and that money is credited toward your purchase price at possession, reducing what your mortgage and remaining down payment must cover on funding day. Your lender needs a paper trail for every dollar: deposit receipts from the builder must match the contract schedule, because underwriting reconciles total funds to close — price, plus GST where it applies, plus closing costs, minus deposits already paid.

When deposits are typically paid

Schedules are set by the builder’s contract, not by law, so read yours rather than assuming. A common pattern is an initial deposit on signing, a second instalment after selections or at a construction stage, and the balance of the agreed deposit structure before possession. Spec and quick-possession homes compress this into weeks; a full build can stretch it past a year. Each payment date is a real cash deadline that exists independently of your mortgage — the mortgage does not exist until funding day, so deposits come from your own funds as they fall due.

What your lender needs to see

Every deposit receipt, the full contract with its deposit schedule, and bank statements showing where the deposit money came from — lenders verify source of funds for anti-fraud and anti-money-laundering compliance, and unexplained deposits into your account create exactly the kind of problem my guide to what documents a broker reviews up front exists to prevent. Keep the trail boring: same account, clear transfers, receipts filed. If family is helping with a deposit instalment, tell your broker before the money moves, not after underwriting asks.

“Mei is very detail-oriented, efficient, and managed to secure me a great rate.” — Kani Lo, Google review

The long-build trap: approval timing

A mortgage approval obtained at contract signing does not survive a 14-month build untouched — rate holds expire, documents go stale, and you will be re-qualified closer to possession. My guide to new-build mortgage approvals in Edmonton covers the rate-hold and re-qualification strategy in full. The deposit-side rule is simpler: never let a deposit deadline push you into a financial move — a new car loan, a drained account — that breaks the approval you will need at the end. Plan the whole cash staircase at the start, through the Pre-Approval & Refinance Check, deposits included.

Frequently asked questions

Do builder deposits count toward my down payment?

Yes. Deposits paid to the builder are credited against the purchase price at possession and form part of your total down payment — your mortgage funds the balance. Your lender verifies them with the builder’s receipts.

Can I get deposit money back if my mortgage falls through on a new build?

It depends entirely on your purchase contract with the builder — new-build contracts are typically firm once signed and conditions are removed, and deposits are generally not refundable. This is why mortgage planning happens before you sign, not after.

Does GST apply to my new-build deposits in Alberta?

GST applies to the purchase price of a new home in Alberta, and deposits are instalments toward that price. How GST is calculated and funded at possession is covered in my guide to GST on a new home and your mortgage — confirm your contract states whether the price is net or plus GST.

Signing with an Edmonton builder and want the deposit staircase and the mortgage planned together? Call (780) 720-8240— I will try to call you this week, or reply with a good time and we will set a phone appointment before your first deposit deadline.

By Travis Bannert, Realtor and Mortgage Broker

Travis Bannert, Mortgage Broker | Next Door Mortgages, BFL Dominion Lending Centres | (780) 720-8240 | nextdoormortgages.com