February 12, 2021, by Neil Sharma
Deposit Rocket, a nascent GTA-based company that operates countrywide, has stepped in as an alternative to conventional cash deposits and certified cheques, which risk delaying an offer on a home until it’s too late.
The CEO of Deposit Rocker, Don Miller, said that the company allows the buyer to unlock their home equity instantly. The guarantee stands in the place of a cash deposit until closing. They can also unlock equity in their liquid assets, and if they’re awaiting a gift from their parents, for example, they can access the home equity that exists in their parents’ home.
Many Canadians’ home equity is tied up in their homes, and because pulling it out is contingent on a bank appraisal, which can take time, that dream home risks slipping through the hopeful buyer’s fingers. However, Deposit Rocket’s partnership with Northbridge General Insurance Corporation allows it to extend deposit guarantees backed by an A-rated insurance company.
“The other thing we provide is the convenience factor because by not having to liquidate your investments, like taking cash out of stocks or mutual funds or bonds, and incur breakage fees in the process, you keep them in your account and earn interest while you wait for your home to close,” said Miller.
“The neat thing for the selling agent is if they’re receiving offers on a home and they like one of them, but the deposit isn’t quite high enough, or it’s not certified, they can ask the buyer to upgrade it on the spot,” said Miller.
What does this mean?
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