The Sovereign advantage

Your goal as a developer is to grow your business as efficiently as possible, while building the communities we live in and helping families into new homes. We have the experience to help Canadian brokers and developers customize a deposit lending facility to their needs. We help you navigate this complex landscape, from satisfying the provincially mandated rules and guidelines for condo development, to working with you to access your deposit capital quickly, easily and affordably. We stand by you throughout the process so you can get your shovels in the ground and families into their new homes – on time and on budget.


Financial benefits

By unlocking lower cost deposit capital early in your construction process, you reduce your total borrowing costs and improve your organization’s Internal Rate of Return.

Streamlined process

Our expertise and strong relationships with industry professionals help you balance the demands of regulations and the need to consistently find improved returns on your business investments.

Fast turnarounds

Fast turnaround times on quotes for Tarion bonds and deposit lending facilities help you get your product to market faster; when combined with quick access to deposits, we help you mobilize your project’s capital more affordably.

Risk appetite

We’re dedicated to residential and commercial condominium developers across Ontario. Currently, our Residential Surety team is focused on supporting developers in Toronto, the GTA as well as Ottawa and the Greater Golden Horseshoe. Regardless of the size of your development, we’re confident that your organization will benefit from our relationship-focused approach to deposit lending.

Coverages designed to protect your business

We understand that every builder has different needs for construction financing and no developer wants their capital tied up any longer than it needs to be. Obtaining deposit financing is easy and streamlined when you have the right partner. Our surety professionals help customize your deposit lending facility, while providing assurance to your purchasers. We focus on protecting your business (and its profitability), so that you can focus on what you do best.

Tarion Bonds

Tarion Bonds

What is Tarion?

The Tarion Warranty Corporation’s (Tarion) role is to administer and enforce the Ontario New Home Warranties Plan Act and regulations. Their mandate is to oversee the licensing of new home builders and vendors and protect consumers when builders fail to fulfill their warranty obligations or fail to complete their projects.

What is a Tarion Bond?

Sovereign Insurance Tarion Bonds protect each purchaser’s deposit up to $20,000 per condo unit and provide warranty protection for residential condos, as required by the Condominium Act.  Providing a bond to Tarion is one of the least expensive ways a new home builder can deliver the necessary security to Tarion so they can begin selling their project and accessing the deposits collected by purchasers to fund ongoing project costs.

How it helps you


By working with you to provide a bond to Tarion, we help get your project to market quicker. With the bond in place, you can take the final steps to register your company as a licensed builder and start selling new homes without tying up your valuable cash and assets.


During the construction phase of your project, Sovereign’s Tarion Bonds give you access to the first $20,000 of the purchaser deposits collected while continuing to backstop your deposit protection and warranty coverages. 

Traditional construction lenders see Sovereign Insurance as partners in your project and the use of deposit monies as a meaningful way to improve your equity and lower the risk in a new home development project.


Once your project is completed, you don’t want large amounts of your equity tied up. Using a Sovereign Insurance Tarion Bond during the warranty phase allows the release of more of your closing proceeds with a fraction of the collateral you would otherwise need to post.

Deposit Protection Insurance (DPI)

Deposit Protection Insurance (DPI)

What is it?

The Condominium Act requires every purchaser’s deposit to be placed into a designated trust account.

A Sovereign DPI facility will insure and protect purchaser deposits in excess of the Tarion minimums in the event of a project cancelation or development failure that prevents the developer from delivering purchasers title to their new homes.

How it helps you

As a developer of residential and/or commercial condominiums who is taking a deposit of more than $20,000 per unit, you may want to consider a Sovereign Deposit Protection Insurance facility. Our DPI facilities not only provide you the freedom to access those deposit monies to fund your project costs but also give your purchasers the peace of mind that every single one of their deposit dollars is protected throughout the life of the project. We can help you do all this much more affordable than you could through traditional construction financing alone.

Advice and tools

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