Pensio Group launches Purchase Power Deposit Guarantees and Pensio EQ2 Shared Equity in support of Canadian pre-construction real estate market
CANADA, September 8, 2021 /EINPresswire.com/ — www.pensiopower.com. Pensio Purchase Power Deposit Guarantees and Pensio EQ2 Shared Equity are newly launched program solutions that support Canadian residential property buyers and real estate developers. These synergistic programs allow homebuyers to defer the majority of their cash deposit to closing and provide a shared equity option to allow them to enter the real estate market with minimum initial deposit requirements.
The Purchase Power 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. When homebuyers pay a minimum 5% of the deposit in cash and are required to place a larger deposit, Purchase Power Deposit Guarantees can be issued for all or part of the additional deposit amount required, up to 20% of the purchase price. At closing, the homebuyer pays the full purchase price to the seller, including the deposit guarantee amount.
“Purchase Power Deposit Guarantees are a low-cost alternative to traditional cash deposits, which can be hundreds of thousands of dollars in today’s market. They can be issued for up to 48 months for pre-construction new-build purchases, and there are no ongoing fees or interest charges,” said Brandon Keks, CEO of Pensio Global. “The homebuyer is able to keep their investments earning interest, and avoid time-consuming and expensive options like home equity lines of credit, bridge financing or the sale of other investments and assets.”
If a homebuyer uses the Purchase Power Guarantee, they have the option of using the Pensio EQ2 Shared Equity program to assist with their purchase. Pensio EQ2 will match a homebuyer’s down payment for a share of the equity in the home. Homebuyers can use the equity funds for up to 10 years with no interest charges or monthly payments. In exchange, Pensio shares in the change of value in the home up to 35% – up or down – when the homebuyer decides to sell. If the home’s value increases, Pensio and the homebuyer both profit as partners. If the home’s value decreases, Pensio takes a portion of the loss. While Pensio EQ2 is a partner in the purchase, the homebuyer is the sole owner of the home.
“Pensio is focused on developing innovative products that directly address key issues in the Canadian real estate market. With affordability and access to liquidity being top of mind these days, Purchase Power Deposit Guarantees and Pensio EQ2 offer unique solutions that allow homebuyers to purchase their desired property but keep the majority of their required deposit cash working elsewhere until closing,” said Brandon Keks. “Deposit Guarantees and EQ2 may be new to the Canadian market but they are established methods of selling property or obtaining homeownership in several G8 countries. As an example, Deposit Power in Australia has issued over one million deposit guarantees to homebuyers. Pensio is committed to delivering solutions that make new homeownership a reality for millions of Canadians.”
Pensio Group of Companies (Pensio Global) is a credit risk consulting, management, and rental income guarantee company operating since 2004, specializing in proprietary rental income risk management programs tailored to the residential and commercial rental markets. Pensio is supported by a vast network of strategic relationships in property development, lending, insurance, and management technology. Headquartered in Canada, Pensio Global provides risk management consulting services and rental income guarantee programs in 4 countries. Pensio has strategic rental income guarantee programs for real estate buyers, developers, lenders, landlords and tenants. The Pensio rental income programs cover pre-construction new-build condo developments, multi-family rental dwellings, short-term extended-stay properties, student housing, seniors living care residences and commercial properties. Pensio’s program’s performance is secured by surety “performance bonds” insured by global insurers, and reinsurers rated A.M. Best A (Excellent) or better.