Deposit Bonds
There are times when you may not have cash immediately available for a deposit on a purchase, or you may want to leave your cash invested up until the day of settlement. In such instances, a Deposit Bond may be the ideal solution.
What is a Deposit Bond?
A Deposit Bond acts as a substitute for a cash deposit between exchange of contracts and settlement. It is a guarantee to the vendor (person selling the property) that you will have the deposit funds available at the time of settlement. Deposit Bonds work like an insurance document, so that in the event that you are unable to pay the purchase costs, the vendor is able to recover the funds from the Bond provider.
Deposit Bonds may be issued for all or part of a deposit amount, usually up to 10% of the purchase price.
More Information on Deposit Bonds
Be aware that if you default on the purchase costs, the Bond provider will recover the funds from you. For more information on Deposit Bonds or to talk to a mortgage broker about home loan options that are in your best interest, call us on 13 94 62 (or +61 2 9249 3739 for international callers) or fill in the form below.
Why use a Deposit Bond?
You may consider using a Deposit Bond in the following scenarios:
- If you would prefer to leave your savings invested and earning interest until the time of settlement
- Your deposit funds are tied up as equity in another property
- You want to avoid the of arranging bridging finance
- You are waiting for funds to clear from another source
- You are going to auction and are unsure about whether you will be successful
More information and home loan help
For more information on how and where to find a better home loan deal from an extensive panel of Australian banks and secure mortgage lenders, or to speak to your local area mortgage expert, contact us on 13 94 62 (direct +61 2 9249 3739)
