Toronto-based Deposit Rocket has launched an alternative to the conventional cash deposit used in residential home purchases.
The company issues the buyer a guarantee that is submitted by the Realtor along with the offer, instead of a certified cheque. The guarantee is simply the buyer’s promise to pay the deposit guarantee amount, at closing. Deposit Rocket Guarantees are backed by an A-rated insurer (A.M. Best Insurance Company) making it as secure for the seller as receiving a certified cheque, the company says.
The company says the concept is used in Australia and has been reviewed by one of Canada’s leading law firms for compliance in Canada, excluding Quebec. It is fully insured by
“Our vision is to make home purchasing quicker and easier. Home buyers can use Deposit Rocket to instantly unlock the equity in their existing home or investments,” says Don Miller, CEO of Deposit Rocket. For example, “If they’re waiting for a gift – often the case with many first-time buyers – they can apply for a Deposit Rocket guarantee using the equity in their parents’ home.
“Our goal is to take the friction out of freeing up deposit funds and the time-consuming exercise of the buyer obtaining a certified cheque to complete their offer. We’ve created a secure alternative that is almost instant, very convenient and affordable – a better buying experience for all involved,” Miller says.
Deposit Rocket Guarantees are available for up to 10 per cent of the purchase price or $100,000 – for up to nine months. The buyer can make as many offers as needed until they are the successful buyer, at no additional cost.
The product has a streamlined, end-to-end portal that features a quick fee calculator and provides instant qualification of buyers, the company says.
“Having this online product simplifies and speeds up the journey for customers,” says James Benson, CEO of the James Benson Group at Keller Williams Advantage Realty in Toronto. “It also makes the process for the Realtors more efficient.”
Muskoka broker Daryl Idiens at Forest Hill Real Estate says in a news release, “Deposit Rocket will allow my out-of-town clients to make an offer without the inconvenience of providing a deposit cheque. They also won’t miss out on any must-buy properties because their deposit funds were tied up.”
Ben Myers, president of Bullpen Research & Consulting says, “The speed and flexibility of Deposit Rocket give Realtors a tool to help their clients make the most competitive offer possible, where previously they were powerless to help.”
The product is available in all provinces except Quebec, at depositrocket.ca.