Deposit Bond

Home Loan Deposit Bond

When contracts for sale of a property are signed by the vendor and the purchaser and then exchanged a deposit of 5 or 10 percent is usually payable by the purchaser.

Purchasers who are obtaining a low deposit home loan usually do not have this amount of cash for a deposit available.

Property investors also, often do not have 10 percent of the property purchase price available. Even property investors that may have the full 10 percent deposit available do not always wish to pay this amount, especially where extended settlement periods may apply.

Many property investors feel it is better to retain the cash in an interest bearing account until settlement.

Deposit Bond or Deposit Guarantee

A deposit bond or deposit guarantee in these instances provides an economical and convenient solution.

A finance broker such as Ability Finance is able to arrange a deposit bond very quickly for their customers who have an unconditional loan approval for the finance to purchase the proposed property.

Purchasing property at auction.

In many cases a deposit bond can be arranged for purchasers intending to purchase property at auction. The purchase amount is usually fixed in line with a finance pre-approval and the property details are left blank, to be filled in if a bid is successful and accepted by the property vendor.

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