What is a House Deposit Guarantee? 

A house Deposit Guarantee 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 Guarantees 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 Guarantee. While this route may not be for everyone, there are many benefits when choosing a Deposit Guarantee as an alternative to a cash deposit when purchasing a new home or property. 

What are the advantages of using a Deposit Guarantee?

It’s quick

  • The application process should only take 5 minutes. Simply apply and provide the documents needed. Applying for a deposit 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. 

It’s convenient 

  • 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 guarantees, depending on when your settlement will occur. 

It’s cost-effective

  • No home appraisal

  • No Line of Credit applications

  • No investment breakage fees

It’s secure 

  • Insured by Aviva Insurance Corporation rated “AA-” (excellent) by A.M. Best, “A-” (strong) by S&P, and “A” (good) by DBRS.

Who is eligible for a house Deposit Guarantee?

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 Guarantee?

You’ve decided that a deposit guarantee is the right route for you - so, what now?

Click here to apply at Deposit Guarantee, 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 Guarantee via chat, phone, or email!.