Lease Guarantee Bond
You are a ______ Bank credit card holder, you’ve signed a lease, and your new Landlord is waiting for you to provide evidence of your Lease Guarantee Bond. Read More below.
FAQ’s- Frequently Asked Questions
- What is a Lease Guarantee Bond? The Lease Guarantee Bond is a promise by a large insurance company (the “Insurer”), to pay the Landlord should you breach any of your obligations of your lease. If the Insurer pays out money to the Landlord under the bond, you become obligated by law to re-pay the Insurer. The Bond is subject to a bond “Limit”. The Limit is the maximum the Bond will pay out.
- Why should I consider a lease guarantee? Landlords want to make sure that you are able to fulfill your obligations under the lease, principally to pay your rent. Many Landlords require that you provide an employment letter, but since you come from another country, this letter is often not accepted by Canadian Landlords. Other Landlords require large security deposits beyond the standard one month (sometimes illegally) which they hold on your behalf. With out an employment letter or a large security deposit, some Landlords won’t rent the apartment to you. Landlords which promote their apartments on the Prepare for Canada, Landlord Web solutions site are waiting for you to provide evidence of a Lease Guarantee Bond. Once you purchase this Lease Guarantee Bond, a copy will be sent to the Landlord automatically and electronically.
- How will a lease guarantee help me? The Lease Guarantee Bond provides you with a financial instrument which many Landlords will accept to demonstrate your obligations under the lease, in lieu of asking for a large security deposit (beyond the one month standard), and in lieu of asking for an employment letter.
- How does the lease guarantee work? When you sign a Rental Agreement between you and your landlord, the bond will provide your landlord with assurance that an insurer is guaranteeing up to $10,000 of your rent payments for the term of your Rental Agreement, should you default on your payments.
- What do I need to apply for the lease guarantee? What information do I need? You will need to have your signed Rental Agreement ready, and will have to answer a few questions about yourself and your landlord.
- When should I apply for the lease guarantee? When you have a signed Rental Agreement between you and your landlord.
- How much does the lease guarantee cost? Including Provincial Taxes if applicable, the total will be under $500.
- How do I get a price (i.e., a ‘quote’)? Go to the “Welcome New Canadians” tab on this site, click on the shopping cart. You will then be prompted to start the application for the lease guarantee bond to get a quote.
- Who is the insurer? The Lease Guarantee Bond is provided by Trisura Guarantee Insurance Company, a Canadian Insurer Rated by A.M. Best as A+ (Superior).
- Am I eligible for Directors Global Lease Guarantee? You are eligible if you are a Scotiabank credit card holder.
- Is this a loan or insurance? This is not a loan – you are not receiving any money. It is simply a three party agreement whereby your landlord is assured that you have a third party backing your rent payment obligations as per your Rental Agreement, up to $10,000. If the Insurer pays out money under the bond, you are obligated to reimburse the Insurer.
- How long will the process take? If you have your signed Rental Agreement ready, the process should only take up to 10 minutes online.
- Which provinces is the lease guarantee available? It’s available Canada wide, but not currently in Quebec because the service is only offered currently in English.
- Which landlords accept the lease guarantee? Your Landlord may be already aware of this program through offering apartments on the Prepare for Canada, Landlord Web solutions site.
- What happens if a claim is made? How do I make a claim”? After you have made a claim by calling 1-800-___ ___, you will be contacted by either a claims adjuster, Directors Global (Broker) or Trisura Guarantee Insurance Company (the “Insurer”, also referred to as the “Surety”) if information is required from you.
- What to happens if you can’t pay a claim? If the claim is valid, the Insurer will pay it under the bond. You will then be obligated to reimburse the Insurer.
- How is my bond guaranteed? If you qualify for the bond, it will be valid for the same term as your Rental Agreement between you and your landlord.
- How do claims work? What can I expect? If a claim is made under the bond, you will be contacted to provide additional information and will be informed of the next steps.