Home and House Deposit Guarantees in Canada
Your instant Home Deposit
No loans, no bank visits, no wasting time!
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What is a Deposit Guarantee?
It is simply a guarantee that you will pay the required deposit upon closing of the home. Deposit Guarantees are now used when submitting an offer instead of a traditional cash deposit.
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Who Qualifies?
If you are a Canadian resident, over the age of 18 who is purchasing an owner-occupied home, you are eligible!
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What are the Benefits?
Deposit Guarantee is quicker and easier than freeing up a cash deposit.
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Deposit Guarantees are quicker and easier than the traditional method of freeing up a cash deposit.
5-minute online application, instant issuance!
No Banks or bridge loans
No arranging & delivering certified cheques
Your Money stays in the market
Can make unlimited number of offers, no extra cost!
No home appraisal
No Line of Credit applications
No investment breakage fees
Larger Deposits
Undoubted Deposits
Receive more offers
Policies Underwritten by Aviva Insurance Company of Canada.
Email directly to your licensed realtor
Increase amount or term instantly
Same or better position a cash deposit
What is a home or house deposit?
A house deposit is typically 5 - 10% of the purchase price of the property, and is a separate amount than the down payment on a home. These deposits are typically secured via a loan or cashier’s cheque, and also with cash equivalent deposit guarantees, like those offered by Home Deposits Now.
How much should my house deposit be in Canada in 2022?
Canadians now have the all-new option of using a Deposit Guarantee cash equivalent guarantee instead of making an offer to purchase a home with a cash deposit.
Our insurers' 'A' grade guarantee backs up your commitment to buy, making it safe for the seller.
Our fees start as a fraction of a percent of the deposit. For a quote, you can use our free Calculator.
What’s a house deposit vs a down payment?
A house or home deposit is generally 5 - 10% of the value and a down payment is typically much more - up to 20%
A key difference between the deposit and down payment is their purpose in securing the confidence of the seller and the mortgage lender, respectively, about your financial ability to own a home. While a deposit tells the seller that you are determined to purchase the property, a down payment tells the bank about your capability to handle the mortgage expenses.
Is a larger house deposit better?
A smaller house deposit can give the buyer more flexibility at the time of settlement, but in a hot housing market, a larger deposit often makes for a more competitive offer.
Home Deposits Now allows you to make a larger deposit on multiple listings without having to release your funds, sell your assets, or take out loans through closing. Home buyers with equity can instantly unlock a larger deposit with Deposit Guarantee to secure a larger deposit. As funds do not change hands until closing, buyers can keep earning returns on their house deposit money until the settlement date, and since Home Deposits Now deposits are not loans, buyers need not worry about interest charges.
Is a deposit on a house refundable?
When you’re buying a property in Canada, a deposit on your home is accompanied by an Agreement of Purchase and Sale (APS). When the deposit is paid and the APS is signed, you’re officially in a legally binding contract.
Now that the purchase has been processed, it is not a good idea to try and go back on your word - the seller may have grounds to sue. Unless you have put conditions on the deposit (i.e., the sale to go through only if the seller agrees to fix a door or a fence on the property) and the conditions have not been met, your deposit can be returned after both parties sign a release form.
What is a home or house deposit guarantee?
The use of deposit guarantees have been a standard practice in the Australian real estate world for decades, and are newly available in Canada.
Just like with a traditional house deposit, the buyer pays the full purchase price at settlement.
Is guarantee deposit and cash deposit the same thing?
A cash deposit is typically done via a cashier’s cheque from a bank - which assures the seller you have a certain amount of cash ready and available for the transaction.
A deposit guarantee is, in essence, an insurance policy. When you take out a deposit guarantee, it gives the seller security knowing that the deposit (i.e., 10% of the property) will be paid to him/her in any circumstances where the deposit is forfeitable by the buyer.
A deposit guarantee allows the buyer to:
- Continue to earn interest as their savings remain intact
- Avoid expensive time delays and bridging loans
- Make multiple offers with the same guarantee
What is Deposit Guarantee?
We help you unlock your equity and secure your deposit online, no banks, no stress and your deposit guarantee is emailed to your licensed realtor, INSTANTLY!
Home Deposits Now provides a guarantee that works as a cash equivalent instead of a certified cheque in the home buying process. It replaces the home or house deposit and makes the process faster, safer, and so much easier.
Home Deposits Now is backed by the Aviva Insurance Company of Canada and are as secure for the Seller as a cash deposit/certified cheque.
Is Deposit Guarantee a loan?
A Deposit Guarantee has a one-time cost that is calculated based on the deposit guarantee amount desired and the term required.It is not a loan extended to you and therefore, you won’t have to borrow any money or pay any interest!
So what’s so great about Deposit Guarantee?
Home Deposits Now unlocks the equity in your current home or assets, 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 Guarantee also allows you to keep your money invested in the market so your investments keep earning you money until closing.
Quick Process
- 5-minute online application, instant issuance!
- No banks, bridge loans or borrowing from friends and family
- No arranging & delivering certified cheques
- Your money stays in the market
- Can make as many offers, on as many houses, as needed, until you are the successful buyer - at no additional cost
- No home appraisal
- No Line of Credit applications
- No investment breakage fees
- Insured by Aviva Insurance Company of Canada.
How does Home Deposits Now work?
Deposit Guarantees are simply your ‘promise to pay’ the deposit amount, at closing.
Your promise is backed by our insurers ‘AA-’ rated guarantee, making it secure for the Seller.
We are willing to guarantee that you will provide the deposit amount upon closing, after we have verified that you have sufficient home equity or liquid investment to do so.
Deposit Guarantees are available from $10,000 to $100,000, for up-to 9 months.
Our five minute online system provides near instant approvals and your Deposit Guarantee is emailed to you and your licensed realtor.
How many offers can I make with my Deposit Guarantee?
This is a huge benefit as a buyer - giving you the flexibility to make multiple offers on homes you adore.
Who qualifies for a Deposit Guarantee?
- Canadian residents
- More than 18 years of age
- Making an offer to purchase an owner-occupied residential property*,
- Available in any province in Canada (except Quebec),
- Utilizing a licensed Realtor
- Must have sufficient home equity or liquid investments to qualify
Are first-time home buyers eligible for Deposit Guarantee?
First-time home buyers with sufficient liquid investments are eligible for a Deposit Guarantee OR your parents can apply as guarantor(s) if they have sufficient home equity. Don’t worry - it’s an easy process and no credit check, bank visits, or complex paperwork.
A good rule of thumb: Home equity or liquid investments are typically 1.5X the amount of the Deposit Guarantee amount.
How much does a Deposit Guarantee cost?
Our fees start at less than 1% of the deposit amount. Please see our Fee Calculator for a quote.
How long does a Deposit Guarantee take?
Approval processing time varies from immediate, to 1-2 business days, depending on your application. Once approved, your Deposit Guarantee is emailed to you and your licensed realtor immediately.
If you have sufficient equity in your home, your application will be approved instantly.
If you have been pre-approved for a mortgage, your application will be approved within hours.
If you qualify for a Deposit Guarantee with liquid investments or your parents home equity, your application will typically be approved in 1-2 business days upon receipt of a completed application.