Travelers Guarantee Company of Canada is the leading provider of specialized surety products for new homes and related services for builders and developers across Canada. Travelers Guarantee offers bonds that are preferred alternatives to letters of credit to meet the security requirements with Tarion Warranty Corporation and municipalities. Travelers Guarantee also provides deposit insurance permitting purchasers' deposits to be used to fund construction while at the same time affording protection to purchasers against loss.
Products and Services
Tarion Warranty Corporation (TARION) Bonds - (In Ontario)
Travelers Guarantee offers bonds to builders of new homes that satisfy their security requirement under TARION's Builder Bulletin 28. Under the bond TARION is covered for both deposit claims up to $20,000 and construction deficiency claims. Travelers Guarantee offers competitive and creative solutions designed to free a builder from the constraints of tying up valuable credit facilities with a lender. These bonds typically require less cash collateral than letters of credit once a project is completed. For more information visit www.tarion.com.
Deposit Insurance
Travelers Guarantee provides security for deposits in excess of the TARION warranty protection of $20,000 for condominium homes and $40,000 for freehold homes. In addition Travelers Guarantee offers Deposit Insurance on projects that fall outside of the TARION warranty coverage. This includes condominium conversions and commercial condominiums.
Equity EdgeTM -New Home Deposit Bonds
Equity Edge New Home Deposit Bonds are one of the many Travelers Guarantee new home products specifically designed to assist purchasers of new homes. These deposit bonds allow purchasers of new homes to defer a portion of the deposit until the closing date of the purchase transaction. This encourages sales and helps the developer reach the pre-sale target sooner. It also alleviates the need for purchasers to borrow money or liquidate investments to secure a deposit. Click here for more information.
Title Insurance
The NewHome Title Guarantee Plan provides value and increased efficiencies for builders and purchasers of new homes. It provides purchasers with the added benefit of TitleEdge title insurance providing increased protection from title risks inherent in real estate transactions and a smooth legal closing at a substantially reduced cost. For more details, please see the Title Insurance section of our Web site.
New Home Warranty & Deposit Protection Insurance - (In British Columbia)
Pursuant to The Homeowner Protection Act, Travelers Guarantee provides 2-5-10 Year Home Warranty Insurance for purchasers of new homes through a network of over 1,500 licenced builders. In January 2005, The Real Estate Development Marketing Act was passed in British Columbia providing for Deposit Protection Insurance enabling builders and developers to use deposit monies as an alternate source of financing. Travelers Guarantee is pleased to offer Deposit Protection Insurance to Home Warranty clients developing new condominium projects. Please click here for more information about New Home Warranty & Deposit Protection Insurance.
Subdivision Bonds
Travelers Guarantee provides subdivision bonds, which are an alternative to letters of credit, on behalf of larger residential land developers in order to secure land development and site servicing obligations to municipalities. These bonds are limited to those municipalities that will accept a subdivision bond in lieu of a letter of credit as security.
Further details may be obtained by contacting the Developer Surety department at 416.360.8183.
