Area of Law: Real Estate Law
Answer # 0400
Home Deposit Help | DepositRocketRegion: Ontario Answer # 0400
A Deposit Rocket Guarantee is the new and improved way of providing the deposit without the stress of having to free up the funds you need right now. A Deposit Rocket Guarantee can help you if:
- your equity is tied up in your existing property,
- you have investments that are locked in,
- you want to keep your money in the market, or
- you are waiting for a gift.
Do all Agents and Real Estate Brokerages accept Deposit Rocket?
Yes, Deposit Rocket is accepted by all agents and real estate brokerages because of their Duty of Care to present all valid offers to the seller.
How does Deposit Rocket work?
Deposit Rocket issues a Guarantee that your Realtor submits along with your offer, instead of a cash deposit or certified cheque. Deposit Rocket Guarantees are simply your ‘promise to pay’ the deposit amount, at closing.
Deposit Rocket Guarantees are available:
- in amounts ranging from $10,000 to $100,000,
- up-to 10% of the property purchase price, and
- up-to 9 months.
You may make as many offers, on as many homes as needed, until you are the successful buyer – at no additional cost (subject to the term).
Once your offer is accepted, you are committed to completing the purchase. If you fail to do so, you may forfeit or be responsible for the Deposit Rocket Guarantee amount, in the same way as you would be responsible for, or forfeit, a cash deposit or certified cheque.
Who is the provider of Deposit Rocket Guarantees?
Deposit Rocket is a licensed insurance brokerage and Deposit Rocket Guarantees are insured by the Northbridge Insurance® group of companies, rated “A” (excellent) by A.M. Best.
Deposit Rocket is available in all Canadian provinces, except Quebec.
How fast can I get a Deposit Rocket Guarantee?
The online application takes only minutes to complete. Approval processing times vary from ‘instantly’ to 1-2 business days, depending on your application. Once approved, your Deposit Rocket Guarantee is emailed to you and your licensed realtor immediately.
Are first-time home buyers eligible?
Yes, first-time home buyers with sufficient liquid investments are eligible for a Deposit Rocket Guarantee. If you do not have sufficient liquid investments, but are awaiting a gift, your parents can apply as guarantors if they have sufficient home equity. The general guideline is that your home equity or liquid investments should be 1.5 times the amount of the Deposit Rocket Guarantee amount.
How does Deposit Rocket compare to bridge-financing / short term loan or applying for a line of credit?
Deposit Rocket is a low-cost alternative compared to other options such as overdrafts, bridge financing or other short-term loans. A Deposit Rocket Guarantee has a one-time cost that is calculated based on the deposit guarantee amount desired and the term required. Fees start at less than 1% of the deposit amount. It is not a loan extended to you and therefore, you won’t have to borrow any money or pay any interest.
For a quote, use the Fee Calculator at Deposit Rocket .
Deposit Rocket unlocks the equity in your current home, so you do not have to tie up or secure a line of credit, or deal with the bank or home appraisal fees.
Using a Deposit Rocket Guarantee also allows you to keep your money in the market so your investments keep earning you money until closing.
You can avoid the stress and complications of having to obtain certified cheques, a line of credit, bridge financing, borrowing from friends and family, or being forced to liquidate investments and paying breakage and interest fees.
Visit Deposit Rocket for a trusted and stress-free alternative to cash deposits by unlocking your equity for a quicker and easier home purchase.
Live support is available from the Deposit Rocket Help Desk .
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