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Frequently Asked Questions

Questions About Our Process

What is Home Deposits Now?

Home Deposits Now is the all-new way to make an offer on your next home.

We unlock your equity in your current home and investments to secure your deposit online, no banks, no stress. Your deposit guarantee is emailed to your licensed realtor, INSTANTLY!

We provide a deposit guarantee that works as a cash equivalent instead of a physical deposit cheque in the home buying process, helping home buyers with more flexibility and speed. It replaces the cash deposit and makes the process faster, safer, and so much easier!

Our Guarantees are backed by an ‘A’ rated, licensed, Canadian insurance company.

Is a Home Deposit Guarantee a loan?

No

It’s a Guarantee or promise that the buyer will pay the home deposit upon closing. No money actually changes hands until closing. Come settlement, the purchase price is paid in full, and the guarantee simply lapses.

Our Guarantees have 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, run your credit score, nor pay any interest!

What’s so great about Home Deposit Guarantees?

No

  • We are fast, simple, and easy
    • 5-minute online application, instant issuance
    • No credit checks
    • No liens or appraisals
    • Secure your deposit anytime

  • We are convenient
    • No need to cash out home equity or investments
    • No hassle of physical deposit cheques
    • Saves you the awkward borrowing of money from friends and family
    • Make unlimited offers - no additional cost

  • We are cost-effective
    • Low-cost alternative compared to traditional methods like
      • Overdrafts
      • Bridge financing
      • Credit cards
      • Short-term loans

    • Your money stays in the market
    • No investment breakage fees

  • We are compliant and ‘A’ Rated
    • Compliant across Canada with Quebec coming soon
    • Nationally recognized ‘A’ rated insurance product

How do Home Deposit Guarantees work?

Instead of making an offer to buy a home with a cash deposit, Canadians now have the all-new alternative of using a Home Deposit Guarantee, if their deposit money is tied up in their home equity or their investments.

Our Guarantees are simply your ‘promise to pay’ the deposit amount, at closing.

Your promise is backed by an ‘A’ rated, licensed Canadian Insurance Company, making it secure for the Seller.

We are providing a Guarantee that you will pay the deposit amount upon closing, after we have verified that you have sufficient home equity or liquid investment to do so.

Home Deposit Guarantees are available from $10,000 to $100,000, for up-to 9 months.

Our five minute online system provides instant approvals and your Home Deposit Guarantee is emailed to you and your licensed realtor.

How many offers can I make with my Home Deposit Guarantee?

You may make as many offers, on as many houses, as needed, until you are the successful buyer - at no additional cost!

This is a huge benefit as a buyer - giving you the flexibility to make multiple offers on homes you adore.

Who qualifies for a Home 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

*Note: Mortgage Helpers, such as renting out the basement is acceptable.

Are first-time home buyers eligible for a Home Deposit Guarantee?

Yes!

First-time home buyers with sufficient liquid investments are eligible for a Home Deposit Guarantee OR your parents can apply as guarantor(s) if they have sufficient home equity.

Don’t worry - it’s an easy process with no credit checks, bank visits, or complex paperwork.

A good rule of thumb: Home equity or liquid investments are typically 1.5X the amount of the Home Deposit Guarantee amount.

How much does a Home Deposit Guarantee cost?

The cost depends on the deposit amount and the term that is purchased. Our fees start at less than 1% of the deposit amount.

Please see our Fee Calculator for a quote.

How long does a Home Deposit Guarantee take?

Our online application takes only minutes to complete.

If you have sufficient equity in your current 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 Home 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.

How much should my home deposit be in Canada in 2022?

Home or house deposits in Canada are usually between 5 - 10% of the property value, but there isn't a hard rule for what makes an adequate house deposit amount.

Canadians now have the all-new option of using a Home Deposits Now cash equivalent guarantee instead of making an offer to purchase a home with a traditional cash deposit.

Our insurers' 'A' grade guarantee backs up your commitment to buy, making it safe for the seller, and easy for the buyer.

Our fees start as a fraction of a percent of the deposit. For a quote, you can use our free Calculator.

Is a larger house deposit better?

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.

We help home buyers with equity, and can instantly unlock a larger deposit with Home Deposits Now. As funds do not change hands until closing, buyers can keep earning returns on their house deposit money until the settlement date, and since guaranteed deposits are not loans, buyers need not worry about interest charges, applications, or even credit checks!

Is a deposit on a house refundable?

Not often.

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 and the conditions have not been met.

What is a home or house Deposit Guarantee?

A Deposit Guarantee is an insurance Guarantee made in lieu of a cash deposit with an offer on a property. It defers the need to pay cash up front; saving you from cashing out home equity or investments, awkward family conversations, or utilizing your line of credit.

The use of deposit guarantees have been a standard practice in the Australian and European 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 a Guaranteed Deposit and cash deposit the same thing?

A cash deposit is typically done via a cashier’s cheque from a bank - which includes liquidation of assets or applying for a loan or line of credit.

A deposit guarantee is, in essence, an insurance policy that promises the seller security knowing that the deposit (i.e., 10% of the property) will be paid to him/her should the buyer fail to close.

A Deposit Guarantee allows the buyer to:

  • Continue to earn interest on their deposit monies as their savings remain intact
  • Avoid expensive time delays and bridge loans
  • Make multiple offers at no extra cost
  • Get secured online in minutes - not hours of paperwork

FAQs from Real Estate Professionals

What is a Home Deposit Guarantee?

A Home Deposit Guarantee is an Insurance Guarantee that the Buyer will pay the deposit along with the down payment at closing. If and in the event the Buyer defaults, the insurance company covers the deposit according to the terms of the guarantee.

What is the risk to the Agent or Broker?

There is no risk to the broker, in fact, because we’ve taken the liability of the cash handling away from the broker, we’ve reduced the risk of the deposit in the event the cheque or bank draft gets lost or misplaced, or if there is a fraudulent EFT. Home Deposit Now’s Guarantees comply with the same provincial rules and regulations, set down by the Real Estate Acts.

What happens if the Buyer defaults?

If the Buyer does not complete the sale, the Surety takes immediate direction from the Deposit Holder (typically the Sellers Listing Brokerage) to step in on behalf of the Buyer to make the Seller whole.

Home Deposits Now follows all Provincial Real Estate Regulations - the Buyer’s obligation to the Seller is the same as a cash deposit.

The Surety has the right to recover any losses that it suffers at the hands of the Buyer.

How do Home Deposit Guarantees work?

Once the buyer has completed the application, signed and paid, the guarantee will be issued immediately via email.

A copy will be sent to the Buyers & Sellers Realtor and the real estate lawyer, together with suggested addendum, to attach to the APS for the offer presentation.

How does a Home Deposit Guarantee work for the Seller’s Brokerage?

The Seller’s Realtor will deal with the Home Deposit Guarantee by:

  1. Entering the details of the guarantee on the trust ledger.
  2. Copy of the guarantee is attached to the trust ledger if necessary in lieu of a bank deposit receipt (RECO receipt) for a traditional cash deposit.
  3. There is no cash management requirement, and no interest calculations.
  4. It is recommended that the Listing Broker invoice the Sellers Lawyer for the full amount of the commission exactly as if the Lawyer is holding the deposit.

What happens when the deposit is a firm deposit?

When a Buyer’s offer is presented to the Listing Broker with a Deposit Guarantee, the offer is considered to be firm at the time it has been accepted by the Seller. This means that the deposit is firm and guaranteed, and the Buyer cannot get out of the deal.

With cash deposit, often a buyer has 24-48 hours to provide a certified cheque, bank draft, or cash transfer as the Deposit. In this case the Buyer has an opportunity to get out of the deal and not provide the Deposit, which means the Buyer has wiggle room which is not ideal for the seller or sellers agent.

Are credit checks, liens or registrations done on the title?

No.

We do not do any credit checks, register a charge or lien on the Buyer’s properties, or charge interest.

This means we do not leave footprints on the Buyer’s credit file, which is good for Mortgage Brokers when getting the best deal for the Buyer. There are no monthly payments to worry about (just a simple one time fee).

What happens if my client’s offer is not the winning bidder?

A Home Deposit Guarantee will allow a Buyer to make as many offers using their Guarantee within its term, at no additional cost.

The Buyer can also extend the term and increase the amount by simply logging into their account, making the changes, and making a payment if extending the term.

Within minutes a new guarantee will be issued, a new offer can be made!

What if the Seller doesn’t accept the Home Deposit Guarantee?

As with any offer, the Seller is, of course, at liberty to do so.

We are a legal and valid deposit method licensed across Canada, with Quebec coming online soon. The Selling Realtor has a legal obligation to present every offer made to the Seller.

In the case of Seller rejection, we will allow the Buyers to use the Home Deposit Guarantee as many times as required until they make a successful offer on their new home.

Our Clients’ satisfaction is our number one priority.

AIR MILES® Reward Program FAQ

What is the AIR MILES® Reward Program and how does it work?

The AIR MILES Reward Program is Canada's most recognized loyalty program with nearly 11 million active collector accounts, representing approximately two-thirds of all Canadian households. AIR MILES collectors get AIR MILES® Reward Miles at more than 300+ leading Canadian, global and online brands and at thousands of retail and service locations across the country. Collectors show their AIR MILES card when they shop at participating partners across Canada and they earn Reward Miles on qualifying purchases, which they can then use towards rewards in-store or online.

How can I become a collector?

Anyone who lives in Canada and is 16 years of age or older can become a collector in only a moment! Join for free at airmiles.ca/ join. Once enrolled, collectors will receive their collector number and digital card on-the-spot and can start collecting Miles right away. You’ll get your AIR MILES card in the mail within 2 weeks.

I haven’t received Miles yet. When will they be posted to my account?

Typically, Miles collected from base offers are added to collector accounts within 90 days from purchase date. Miles collected through bonus offers, may take up to 120 days to be deposited to your Account. If it has been longer than that, you can submit a Missing Miles Inquiry with our Customer Care Team.

If I make a return, will the Miles I received on the original purchase be withdrawn?

Yes. Returns will result in the Miles from the original transaction being debited from your collector account.

Do I need my AIR MILES® card during a refund?

No, you do not require your card during a refund, the Miles will be automatically taken from your account.

What is the difference between Cash Miles™ and Dream Miles™?

Cash Rewards: Instantly use the Miles from your AIR MILES Cash account towards in-store or online purchases at participating partners. 95 Cash Miles = $10 towards your purchases at participating partners, either instantly at checkout or at any time using evouchers. You can redeem up to a maximum of $750 per Cash account per day at most AIR MILES Cash partners. Standard daily Cash Miles usage limits and Terms and Conditions apply. See airmiles.ca/cash for details.

Dream Rewards: Use your Dream Miles to get the hottest merchandise, access to exciting entertainment and events, and just about every kind of escape you can imagine! Rewards start from 250 Miles. Browse the rewards catalogue at airmiles.ca/rewards or see travel options at airmiles.ca/travel. All Rewards offered are subject to the Terms and Conditions of the AIR MILES Reward Program, are subject to change and may be withdrawn without notice. To redeem Travel Rewards, you must have accumulated sufficient AIR MILES reward miles in your Dream Balance. Collectors must pay taxes, fuel surcharges and other applicable charges and fees on air travel Rewards. Travel Rewards may be subject to a minimum advance booking and availability from participating Suppliers. For complete details, see current Program Terms and Conditions available at airmiles.ca.

How can I find out the balance of my AIR MILES collector account?

You can see your AIR MILES Cash and Dream balances any time at airmiles.ca or the AIR MILES app. Once signed in, your current account balances will appear at the top of the screen.

Where can I use Miles towards a reward?

Once Miles start adding up in your Dream or Cash account, you can use Cash Miles in-store by simply showing your AIR MILES card and asking to use Miles at check out.

Evouchers are available starting from 95 Cash Miles and can be ordered at any time online at airmiles.ca/cash or through the AIR MILES app.

Dream Miles can be used towards tons of merchandise and entertainment rewards, as well as exciting travel options including flights, hotels, vacation packages, cruises and more!

®™ Trademarks of AM Royalties Limited Partnership used under license by LoyaltyOne, Co. and Deposit Rocket Inc.