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 itâ€™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 theyâ€™re awaiting a gift from their parents, for example, they can access the home equity that exists in their parentsâ€™ home.
Many Canadiansâ€™ 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 buyerâ€™s fingers. However, Deposit Rocketâ€™s partnership with Northbridge General Insurance Corporation allows it to extend deposit guarantees backed by an A-rated insurance company.
â€œThe 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,â€ said Miller.
â€œThe neat thing for the selling agent is if theyâ€™re receiving offers on a home and they like one of them, but the deposit isnâ€™t quite high enough, or itâ€™s not certified, they can ask the buyer to upgrade it on the spot,â€ said Miller.
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