Blanket’s Homeward Bond ignites pre-sales for home builder’s and developer’s by helping purchasers bridge the gap between the minimum down payment and the full down payment of 10% to 20% of the purchase price. Faster pre-sales means faster construction, more security and less wasted time. When it comes to building a home, it’s all about security, minimizing risk and peace of mind. Blanket’s Homeward Bond provides exactly that.
HOW IT WORKS
Blanket’s Homeward Bond helps purchasers come up with less of a cash deposit (only 5% or $12,500 whichever is greater) as opposed to the full 10% to 20% required by developers for them to achieve true presale status with the lending institutions so that the bank to commits to the project. Blanket then bonds the remaining money to the purchaser in a form of an insurance backed bond that satisfies the bank’s requirements as a full deposit. It is also assignable to the Lender!
All major lenders have accepted Blanket’s Homeward Bond including Canadian Western Bank, Royal Bank of Canada, MCAP and the Laurentian Bank.
THE HOMEWARD BOND IS A WIN-WIN FOR EVERYONE
Faster pre-sales means faster lender advancement, less costs associated with marketing and less construction delays. By asking for more security from your purchasers without being costly – you lock in your purchasers so they don’t walk away from your project at closing. Our program also offers your purchasers interest rate holds up to 36 months to ensure they close in the case of interest rates rising during the construction period. The Homeward Bond will also satisfy your lender as this product is insurance backed. There is no obligation to the developer or the lender to collect on the bond if a purchaser still decides not to close. The developer simply submits their claim for their financial loss and then has the opportunity to resell the unit for a higher price once completed.