No Deposit Home Loan Deposit Bond
When contracts for sale of a property are signed by the vendor and the purchaser and exchanged a deposit of 5 or 10 percent is usually payable by the purchaser.
Purchasers who are obtaining a no deposit home loan usually do not have this amount of cash available. Property investors also often do not have 10 percent of the property purchase price available and even those that may do do not always wish to pay this amount out especially where extended settlement periods may apply. In many cases it may be advantageous to retain the cash in an interest bearing account.
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 purchasers who have an unconditional loan approval from their bank or lender 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.
To arrange an economical deposit bond contact a finance broker on 02 8002 4035 or with the finance broker contact form.