Is Buy.ca Legit? A Real Estate Lawyer’s Review of the "Downpayment Boost" Closing
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Summary: Yes, Buy.ca's "Downpayment Boost" is legit. It is a commission rebate of up to 1.5% of the purchase price, permitted under Ontario's Real Estate and Business Brokers Act, recorded as a credit on the Statement of Adjustments at closing.
When a company advertises cash back to homebuyers, the first question clients ask is whether it is real or whether there is a catch. Ownright handles the closings for hundreds of Ontario transactions and has closed numerous deals involving the Buy.ca program. Here is how the rebate works, how the funds are verified, and what the closing process looks like from a lawyer's desk.
What is the Buy.ca "Downpayment Boost"?
The "Downpayment Boost" is not a loan, and it is not free money created from thin air. It is technically a commission rebate of up to 1.5% of the purchase price, paid to the buyer and permitted under Ontario's Real Estate and Business Brokers Act (REBBA).
Under REBBA, a real estate brokerage is allowed to rebate a portion of its commission to a client. The mechanics are straightforward:
The source: The seller pays a commission (typically 2.5%) to the buying brokerage.
The rebate: Instead of keeping the full amount for overhead and profit, Buy.ca legally credits 1.5% of the purchase price back to the buyer.
Is Buy.ca legit?
Yes. The funds are verified, documented, and fully compliant with Ontario real estate law. The rebate is not handed over as a bag of cash; it is processed formally through the Statement of Adjustments, the same ledger your lawyer uses to balance every transaction.
On closing day, your lawyer prepares a ledger that balances all the funds coming in (mortgage, downpayment) and going out (payment to the seller). Here is how a Buy.ca deal differs from a standard one.
Standard deal | Buy.ca deal | |
How funds arrive | You bring the full downpayment to your lawyer via bank draft or wire | We receive a "Commission Rebate Direction" from the brokerage |
Treatment on the ledger | Downpayment recorded as funds you provide | Rebate entered as a credit on your ledger |
Cash you bring to close | Full downpayment amount | Less cash, because the credit reduces what you owe |
Is the commission rebate model compliant?
Yes. The model operates strictly within the guidelines of the Real Estate and Business Brokers Act (REBBA). As lawyers, we do not simply take the brokerage's word for it. We verify the Commission Trust Agreement and ensure the rebate is properly recorded on the final closing documents, which turns what some view as a marketing promise into a binding financial credit.
Homebuyers are doing more due diligence than ever, and online discussions and Buy.ca reviews often debate the economics of the program. The legal reality, however, is straightforward: when documented correctly through the Statement of Adjustments, the rebate is a transparent, secure, and legally sound method of closing.
How does the closing process work?
Buy.ca partners with Ownright in part because of a shared focus on technology. A traditional closing often involves driving across town to sign paper documents in a boardroom; for Buy.ca clients, Ownright uses a remote signing process instead.
Video signing: We verify your ID and witness signatures via secure video call.
Digital documents: You review your purchase agreement and mortgage documents digitally.
Funds transfer: We handle the flow of the Downpayment Boost directly with the brokerage, so you do not have to chase cheques.
Frequently asked questions
Is the Downpayment Boost a loan?
No. It is not a loan and it is not free money. It is technically a commission rebate: the buying brokerage credits a portion of the commission it earns back to the buyer, which is permitted under Ontario's Real Estate and Business Brokers Act.
How much money do you get back?
Buy.ca credits up to 1.5% of the purchase price back to the buyer. The funds originate from the commission (typically 2.5%) that the seller pays to the buying brokerage.
Do you receive the rebate as cash?
No. It is handled formally through the Statement of Adjustments. Your lawyer enters the rebate as a credit on the closing ledger, which means you bring less cash to close your deal rather than receiving a separate cash payment.
How does the lawyer verify the rebate?
Ownright does not simply take the brokerage's word for it. We verify the Commission Trust Agreement, receive a Commission Rebate Direction from the brokerage, and ensure the rebate is properly recorded on the final closing documents.
Why is the closing process remote?
Buy.ca and Ownright share a focus on technology. Rather than signing paper documents in a boardroom, clients verify ID and witness signatures by secure video call, review documents digitally, and have the lawyer handle the flow of funds with the brokerage.
About the author
Benjamin Berry is a co-founder and principal lawyer at Ownright. He works on Ontario residential real estate transactions and writes to make the documents and steps of buying and selling a home clear for the people going through them.
At Ownright, our priority is the security and seamless execution of your property transaction, and we scrutinize every source of funds to ensure full compliance with lender and provincial requirements. If you are buying through the Buy.ca program or any other route, you can start your closing online or get in touch with any questions.
Legal references: Real Estate and Business Brokers Act (REBBA), Ontario.
Important note: This article is not legal advice. No one should act, or refrain from acting, based solely on the information in this post or any linked materials without first seeking appropriate legal or professional advice.