What is a House Deposit Bond?
A house deposit bond can be used as a substitute for a cash deposit which acts as the insurance that the buyer will pay the deposit on closing. Deposit bonds are a perfect option for those wanting to purchase a property who don’t have immediate access to the cash deposit but will at the time of closing.
As this smart alternative to cash deposit continues to become more and more popular in Canada, you may be wondering why you should consider using a house deposit bond. While this route may not be for everyone, there are many benefits when choosing a deposit bond as an alternative to a cash deposit when purchasing a new home or property.
What are the advantages of using a deposit bond?
The application process with Deposit Rocket should only take 5 minutes. Simply apply and provide the documents needed. Applying for a deposit bond couldn’t be easier!
The fast application process can help speed up the purchase process, ensuring that you can snatch your dream home or property off the market.
With no banks or bridge loans
No arranging & delivering certified cheques
Your money stays in the market
You won’t have to worry about dipping into your savings and will still have access to cash
You have the flexibility to choose between short-term or long-term deposit bonds, depending on when your settlement will occur.
No home appraisal
No Line of Credit applications
No investment breakage fees
Insured by Northbridge General Insurance Corporation rated “A” (excellent) by A.M. Best, “A-” (strong) by S&P, and “A” (good) by DBRS.
Who is eligible for a house deposit bond?
If you are a Canadian resident, over the age of 18 who is purchasing an owner-occupied home, you are eligible! The applicant(s), must have either equity in their current home or be pre-approved for a mortgage or have liquid investments, in order to qualify. First-Time home buyers can also apply with their parents, utilizing their home equity.
How do I apply for a deposit bond?
You’ve decided that a deposit bond is the right route for you - so, what now?
Click here to apply at Deposit Rocket, your guarantee will be issued instantly online and delivered to you and your licensed realtor,
Deposit Rocket is inserted into your offer instead of a cash deposit and finally at closing simply pay the full purchase price.
Do you have any questions? Check out our FAQ or we would be happy to answer any questions or queries you may have about deposit bonds via chat, phone, or email!.