Whether you’re a first-time buyer or ready to upgrade, coming up with the money for a home deposit can be challenging. If your equity is tied up in investments, your current home, or you don’t have time to secure a line of credit, this makes it even harder to come up with a fast deposit in a competitive market. A Home Deposits Now 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 Home Deposit 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.

Home Deposits Now is a Licensed Insurance Brokerage and Deposit Guarantees are insured by the Aviva Canada, rated “A” by A.M. Best.

How do Home Deposit Guarantees work?

The Home Deposit Guarantee is a cash equivalent alternative to the traditional cash or certified cheque deposit. Home Deposits Now provide your realtor with the Home Deposit Guarantee, which your Realtor submits along with your offer. You only have to pay the deposit amount when it comes time to close.

Home Deposit Guarantees are available:

• in amounts ranging from $10,000 to $100,000, and
• up-to 10% of the property purchase price,

In addition, Home Deposit Guarantees are valid for 9 months, allowing you time to place as many offers on as many homes as you’d like until you are the successful buyer.

How do you qualify?

You are eligible for a Home Deposits Now Guarantee if you:

• Are a Canadian citizen
• Are at least 18 years of age
• Have equity in a current home, investments, or through a parental guarantor
• Are in the process of making an offer on an owner-occupied home
• Are working with a licensed realtor

Home Deposit Guarantees are available in all Canadian provinces, except Quebec.

 

Do all Realtors accept Deposit Guarantees?

Yes, Home Deposit Guarantees are accepted by all agents and real estate brokerages because of their Duty of Care to present all valid offers to the seller.

Are first-time home buyers eligible?

Yes, first-time home buyers with sufficient liquid investments are eligible for a Home Deposit 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 Guarantee amount.

How does a Deposits Guarantee compare to other loans?

Deposit Guarantees are a low-cost alternative to traditional home deposits such as, overdrafts, short-term loans and bridge financing.  A Deposit 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 Cost Calculator.

Home Deposits Now unlocks the equity in your current home, so you don’t have to tie up or secure a  line of credit, or deal with the bank or home appraisal fees.

Using a Deposit 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 Home Deposits Now for a trusted and stress-free alternative to cash deposits by unlocking your equity for a quicker and easier home purchase.

How fast can I get a Deposit Guarantee?

The requirements for a Home Deposit Guarantee are simple, and you can apply online to get approved in minutes. Once approved, your Deposit Guarantee is emailed to you and your licensed realtor immediately.

Click here to get started on your free application today.