Short answer
Do not assume the assignor receives the deposit and profit as soon as the assignment is signed. The agreement between assignor and assignee must state what is paid, when it is paid, who holds it and what happens if builder consent or final closing fails. The cash-flow structure can decide whether the assignment is workable.
The client problem behind the question
The assignor needs money now, while the assignee does not want to advance a large sum before builder consent or final closing. Both sides can misunderstand whether ‘assignment price’ includes the original deposit, the markup or both.
A practical Ontario example
Illustration only: The original price is $700,000 and the assignor has paid $105,000 in deposits. The assignment consideration is negotiated at $735,000. The parties still need their lawyers to document reimbursement of the deposit, treatment of the $35,000 difference, trust conditions, builder consent and remedies if the assignee does not complete.
Questions Rajiv would ask before suggesting a route
- Is the stated amount the total assignment price or only the markup?
- When is the original deposit reimbursed?
- Is money held in trust pending consent or closing?
- Who pays builder, legal and commission charges?
- What happens to each payment if the transaction fails?
Practical routes to compare
- Have both lawyers document a clear payment schedule and trust conditions.
- Ask an accountant to estimate GST/HST and income-tax cash before calling the remainder profit.
- Keep proof of every deposit and transfer for the assignee’s lender and source-of-funds review.
Keep the decisions separate
- Contract and liability: the builder agreement, assignment documents and written consent are for the real-estate lawyer to interpret.
- Marketing and price: a Realtor can assess comparable choices and work within builder restrictions.
- Mortgage: the lender decides acceptable value, income, credit, documents and funding structure. A regulator does not set that lender policy.
- Tax: an accountant or tax lawyer should confirm GST/HST, rebate and income-tax treatment from the actual facts.
Where A, alternative, MIC and private lending may fit
An A lender is normally the first route when income, credit, debt ratios, property and current value fit. Alternative lenders can take a broader view of income or property at a higher cost. A MIC is an institutional mortgage lender and may offer a six-to-twelve-month or longer term, interest-only or amortized payments, open or partially open features, and sometimes a maturity matched to the planned exit. A private lender may also bridge a closing. A short-term approval is useful only when the client can explain how it will be repaid through refinance, sale or other documented funds.
Verified fact and current limitation
Payment mechanics are contractual and should be drafted by the parties’ lawyers. CRA’s GST/HST treatment may apply to assignment consideration, so gross cash received is not the same as after-tax profit.
Source checked 2026-09-03: read the primary source. Builder wording, lender policy, taxes, appraisal and market conditions must still be verified for the file.
Pressure-test the answer
The route can fail if consent is refused, marketing is restricted, the assignee cannot finance, the appraisal is low, payment timing is unclear, tax is larger than expected, documents expire or the assignor remains liable. Keep a closing fallback, calculate the worst cash requirement and involve the lawyer before a contractual deadline is missed.
Documents to gather now
- Original purchase agreement, disclosure statement, amendments and assignment clause
- Builder consent requirements, fee schedule and critical dates
- Deposit receipts, upgrade payments and 90-day source-of-funds history
- Proposed assignment agreement and payment schedule
- Current income, credit, liabilities and other-property details
- Comparable sales, appraisal and lawyer/accountant estimates when available
Related AskRajiv guidance
Continue with closing funds deadline source of money ontario, large deposit bank transfer before mortgage closing.
Get an assignment closing strategy
Use Rajiv’s direct mortgage strategy form. Include the builder deadline and the result you need: assign, close, rent, sell or arrange a short-term bridge.
Source and review
Reviewed by Rajiv Verma, Mortgage Broker on 2026-09-03. Educational information only; not legal, tax, appraisal, real-estate or mortgage approval advice.