Deposit Bonds


A deposit bond is a substitute for the cash deposit that is required when purchasing a residential property and can be issued for all or part of the deposit required up to 10% of the purchase price.

When you have found the perfect property and you need a cash deposit to secure the property. This means when you are purchasing a property, you do not have to pay the deposits in cash when the contracts are signed. You simply pay the full price at the settlement.

This may happen when you

  • You have sold your current home but the funds are not available for your deposit.
  • Are a first home buyer and won’t have access to the deposit amount until settlement.
  • Are an investor and the loan funds are not available until settlement.
  • Do not want to pay penalty for breaking a fixed term investment or selling shares.
  • May want to attend one or more auctions with out having to put aside the funds for the deposit each time.

Bonds are usually short and long term and are generally up to 6 months for short term and between 6 and 48 months for long term and are perfect when buying properties of the plan, under construction or vacant land with extended settlements.

What do you pay?

Basically you pay a premium and depending on the size and term of the deposit will apportion to the amount you will pay. If you are not sure feel free to call us for a free obligation quote.

You might choose to tie your cash up in term deposits for long periods, rather than putting it into a deposit.

When applying for a deposit bond you will still need to show that you have the ability service the full loan on settlement.

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