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PURCHASE POWER DEPOSIT DEPOSIT GUARANTEE 
WHAT IS A DEPOSIT GUARANTEE?

A Purchase Power Deposit Guarantee acts as a replacement for the cash deposit required by the seller when making an offer to buy real estate. It acts as a guarantee of the deposit payment. At closing, the purchaser simply pays the full purchase price to the seller including the deposit guarantee amount. If you pay 5% of your deposit in cash and are required to place a larger deposit, Purchase Power Deposit Guarantees can be issued for part of the additional deposit amount required, up to 20% of the purchase price.

Purchase Power Deposit Guarantees can be issued to purchase most types of properties with settlement terms to match the needs of the purchaser. Purchase Power Deposit Guarantees are an inexpensive alternative to cash deposits with only a small fee required based on the closing date and amount of the deposit guarantee you need for your property purchase. There are no ongoing fees or interest charges. Purchase Power Deposit Guarantees can be issued for short term three-month purchases to long term, up to 48 months pre-construction new build purchases.

HOW IT WORKS 
  • Stage 1: Buyer completes Agreement of Purchase and Sale along with Schedule C indicating the use of Purchase Power Guarantee.

  • Stage 2: Buyer Pays 5% down payment towards the purchase price of the property (*Subject to change as per Builders Payment criteria for initial payment)

  • Stage 3: Buyer makes decision to either put remaining down Payment in cash or use Purchase Power Guarantee option. Purchase Power can contribute up to 20% of the purchase price or $500,000 maximum)

  • Stage 4: Buyer registers an account and then fills out the application

  • Stage 5: PPG Team will review and in most cases approve Buyer's application within 24 hours.

  • Stage 6: Upon document verification and notice of approval from the PPG Team, the Buyer submits payment online or through other verified form of payment.

  • Stage 7: Once PPG team receives the payment details; PPG Guarantee certificate is issued to the Buyer and Seller.

  • Stage 8: On Closing Date, the PPG guarantee expires and the Buyer proceeds to pay the down payment.

  • Stage 9: If Buyer defaults or has insufficient funds to cover the down payment, then the Seller's solicitor must provide notice to Purchase Power and the PPG guarantee will cover the down payment to the Developer.

  • Stage 10: PPG pays the Guarantee amount in five business days to the Developer.

PURCHASE POWER

DEPOSIT GUARANTEE

When you pay 5% of your deposit in cash and are required to place a larger deposit, Purchase Power Deposit Guarantees can be issued for part of the additional deposit amount required, up to 20% of the purchase price. The Deposit Guarantee acts as a substitute for the cash deposit required by the Buyer of a residential property when signing an Agreement of Purchase and Sale. You can purchase pre-construction new build and resale residential homes with closing dates up to 48 months. Home Owners and First-time home buyers are able to obtain a Purchase Power Deposit Guarantee.

Purchase Power Deposit
Guarantee Brochure
Download (4.1 mb)
Sample Purchase Power 
Guarantee Certificate 
Download (0.2 mb)

YOUR NEW HOME AWAITS!