top of page
What are Purchase Power Deposit Guarantees for Home Buying
A Purchase Power Deposit Guarantee is a certificate that can be used in place of the cash deposit a home buyer needs to pay when signing a property purchase agreement. It acts as a guarantee of the deposit payment in lieu of cash. At closing, the buyer then simply pays the full purchase price less their small cash deposit.
A Purchase Power Deposit Guarantee can be issued to secure most types of residential properties with closing terms to match the needs of the buyer and the seller. Most property purchases close within months, but pre-construction new home construction can take up to 48 months.
There is only a one time fee required. There are no ongoing fees or interest charges. The fee varies depending on the term of the Purchase Power Deposit Guarantee and the amount required.
Time until the closing date
3 Months
The amount guaranteed by
Purchase Power Deposit Guarantee
$100,000
Purchase Power
Deposit Guarantee fee*
$3,000
*plus applicable taxes
Time until the closing date
12 Months
The amount guaranteed by
Purchase Power Deposit Guarantee
$100,000
Purchase Power
Deposit Guarantee fee*
$5,500
*plus applicable taxes
Time until the closing date
48 Months
Amount guaranteed by
Purchase Power Deposit Guarantee
$100,000
Purchase Power
Deposit Guarantee fee*
$7,000
*plus applicable taxes
Buying a Home
A Purchase Power Deposit Guarantee is an efficient solution and a much better alternative than having to set aside a lump sum of money for 24 to 48 months when you are buying a pre-construction new build property.
Your savings may be tied up in your current property or in income-producing investments, which provide good investment returns while you are waiting for your new home to be built or sell your existing property.
Purchase Power Deposit Guarantees can be used for:
-
Re-Sale Homes
-
Investment Properties
-
Vacation Properties
-
Pre-Construction New build up to 48 months
bottom of page