DEPOSIT BONDS ARE A SUBSTITUTE FOR NOT HAVING THE 10% CASH DEPOSIT UPFRONT
The purpose of a deposit bond is for when you purchase a residential property, you do not have to pay the deposit in cash when the contracts are signed. Before being issued with a deposit bond, you need to bale to demonstrate your ability to settle and understand it does not remove your obligation to pay the deposit, it just delays it until settlement.
In what circumstances would I need a deposit bond?
- When you have sold your current home but funds are not yet available for the deposit
- When you are a first home buyer and don't have the full 10% cash deposit required
- When you are an investor and the loan funds are not available until settlement
- When you do not want to pay the penalty for breaking a fixed investment or selling shares
- When you may want to attend more than 1 auction before you decide which home to purchase
- When you prefer to keep your savings earning interest right up until the day of settlement
- When you want a cheaper and quicker solution to arranging a deposit, than securing short term finance
It's quick and easy: You return a completed and signed double sided application form to us and the deposit bond will be issued within 48 hours to you, us and the vendor's real estate agent from an insurer like Vero.
It's flexible: Deposit bonds can be used for private treaty and auction purchases. Check with the vendor of the auctioned property if they will accept a deposit bond instead of cash or a cheque before you commence bidding.
It's cost effective: Iit only costs a one off flat fee of 1.2% of the deposit amount. For example, if you were buying a $400,000 home and require an upfront 10% deposit of $40,000 then applying for a deposit bond would only cost you $480.
If you would like to discuss deposit bonds in detail you can:
- Call us during business hours on (03) 9700 7033.
- Make an appointment or Submit an enquiry.