Is Buy.ca Legit? A Real Estate Lawyer’s Review of the "Downpayment Boost" Closing

In the world of real estate, the old saying usually holds true: "If it sounds too good to be true, it probably is."

So when a company like Buy.ca advertises a "Downpayment Boost" that gives homebuyers up to 1.5% cash back upfront, the first question we usually hear from clients is: "Is this legit? Or is there a catch?"

As a modern real estate law firm, Ownright handles the closings for hundreds of transactions across Ontario. We have closed numerous deals involving the Buy.ca program.

Here is a legal breakdown of how the program works, how the funds are verified, and what the closing process actually looks like from a lawyer's desk.

The Legal Mechanics: What is the "Boost"?

From a legal perspective, the "Downpayment Boost" is not a loan, and it isn't "free money" printed from thin air. It is technically defined as a Commission Rebate.

How it works under the law: Under the Real Estate and Business Brokers Act (REBBA) in Ontario, a real estate brokerage is permitted to rebate a portion of their commission to a client.

1. The Source: The seller pays a commission (typically 2.5%) to the buying brokerage.

2. 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.

Where Do I See the Money? (The Statement of Adjustments)

Skeptical buyers often ask if they get a bag of cash handed to them. The answer is no, it is handled formally through the Statement of Adjustments.

On closing day, your lawyer (us) prepares a ledger that balances all the funds coming in (mortgage, downpayment) and going out (payment to seller).

• Standard Deal: You bring the full downpayment amount to your lawyer via bank draft or wire.

• Buy.ca Deal: We receive a "Commission Rebate Direction" from the brokerage. We enter this as a Credit on your ledger. This means you need to bring less cash to the lawyer to close your deal.

The Verdict: The funds are verified, documented, and fully compliant with Ontario real estate law.

The Closing Process: How We Speed It Up

One of the reasons Buy.ca partners with Ownright is our shared focus on technology. A traditional closing often involves driving across town to sign paper documents in a boardroom.

For Buy.ca clients, we utilize a remote signing process:

• Video Signing: We verify your ID and witness signatures via secure video call.

• Digital Docs: 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 don't have to chase cheques.

Is the Commission Rebate Model Compliant?

In the digital age, homebuyers are doing more due diligence than ever before. When encountering a financial incentive like the "Downpayment Boost," it is natural for clients to research online and ask: Is this model fully compliant with Ontario regulations?

While online discussions and Buy.ca reviews often debate the economics of the program, the legal reality is straightforward.

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 that the rebate is properly recorded on the final closing documents. This transforms what some view as a "marketing promise" into a binding financial credit.

Final Thoughts

At Ownright, our priority is the security and seamless execution of your property transaction. We scrutinize every source of funds to ensure full compliance with lender and provincial requirements.

The Buy.ca Downpayment Boost represents a structural evolution in how real estate commissions can be utilized to benefit the buyer. For clients seeking to maximize their liquidity, we can confirm that this process, when documented correctly through the Statement of Adjustments, is a transparent, secure, and legally sound method of closing your home.