Developer Surety
Developers need a surety partner with the capacity and expertise to meet a wide range of needs unique to commercial and residential development projects.
Travelers Canada has the resources to support your project throughout its life cycle, from site development through successful completion, with performance warranty and deposit protections that provide security to municipalities, investors and home buyers.
In addition, developer surety bonds are a cost-effective alternative (where permitted) to letters of credit and traditional bank financing, enabling you to allocate more resources to your development project while building access to credit for the next one. Not only do we support your project, we support the growth and success of your businesses.
For over twenty years, our surety products have been important economic instruments to communities across Canada, paving the way for progress.
Who is this right for?
- Land Developers
- Low Rise Home Builders & Developers
- High Rise Home Builders & Developers
- Commercial Condominium Developers
Find what fits
Tarion is responsible for administering the Ontario New Home Warranties Plan Act, which outlines the warranty protection that new home and condominium builders must provide, by law, to their customers. Travelers Canada offers bonds to builders that satisfy Tarion's security requirements, which must be provided prior to the sale of any condominium units.
The bond is available for Tarion to recover purchaser deposit claims up to $20,000 for each condominium unit in the event that the project is not completed and the builder is unable to return deposits OR perform its obligations under the agreement of purchase and sale as well as for construction deficiency claims.
Travelers Canada offers competitive and creative solutions for a developer to utilize deposits as a source of financing in a project. Utilization of deposits reduces the amount of traditional bank financing, in turn reducing interest costs, improving a developer's bottom line.
Travelers Canada provides insurance for deposits in excess of the Tarion warranty protection of $20,000 for condominium homes and up to $60,000 for freehold homes. This allows the builder access to those deposits for use in construction. In addition, we offer deposit insurance on projects that fall outside of the Tarion warranty coverage such as commercial condominiums.
Travelers Canada provides the mandated 2-5-10 year home warranty insurance for purchasers of new homes through a network of more than 1,600 licensed builders. In 2005, the Real Estate Development Marketing Act was passed in British Columbia providing for Deposit Protection Insurance, which enables builders and developers to use deposit monies as an alternate source of financing. Travelers Canada is pleased to offer Deposit Protection Insurance to home warranty clients developing new condominium projects.
For Residential Home Warranty products such as 2-5-10 New Home Warranty, Deposit Protections Insurance and Equity Edge please click here.
Travelers Canada provides subdivision bonds as an alternative to letters of credit, freeing up valuable borrowing capacity, on behalf of larger residential land developers in order to secure land development and site servicing obligations with municipalities. These bonds are limited to those municipalities that will accept a subdivision bond in lieu of a letter of credit as security.
