The Equity Edge™ New Home Deposit Bond is one of the many Travelers Guarantee Company of Canada's new home surety products specifically designed to assist you with one of the most exciting purchases you will make.
If you are considering buying a new home, you will quickly discover that builders require substantial deposits to be paid many months in advance of the closing of the purchase.
The Equity Edge™ New Home Deposit Bond allows you to defer part of the payment of the deposit until the closing date of your purchase. Most purchasers use three sources of funds to provide the cash deposit:
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cash in the form of savings or investments;
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cash from an RRSP; and
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cash from equity proceeds from the sale of an existing home.
Rather than liquidating your investments or borrowing the down payment from a financial institution, here is how the Equity Edge™ New Home Deposit Bond can help:
| Purchase Price of New Home | $300,000 | |
| Deposit Required (20%) | $60,000 | |
| Deposit Schedule | ||
| Initial Cash Deposit | $1,000 | Due: Today |
| Second Cash Deposit | $29,000 | Due: Within 7 Days |
| Equity Edge Bond | $30,000 | Due: Closing Date |
| Costs: | ||
| Equity Edge Application Fee | $100 | |
| Equity Edge One-Time Premium 3%* | $900 | |
| Total | $1,000 |
