A Deposit Bond also known as a Deposit Guarantee is an alternative to a cash deposit that is payable when signing a contract to purchase residential property. A Deposit Bond is generally used in instances where you have cash tied up in other investments such as shares or a term deposit, or where you're waiting on the settlement of your existing property, or on borrowing 100% of the purchase price. You pay the full purchase price (which includes the deposit amount) at settlement. The Deposit Bond will be released following settlement.
Benefits include:
Convenient and cost effective alternative to a cash deposit when purchasing residential property
Ability to keep investments for longer
Fast turn-around
No security required
Flexibility at auctions as the guarantees are readily acceptable
The Deposit Bond will be available for deposits for up to 10% of the purchase price and is available for terms up to 36 months. The cost to purchase a deposit bond is approximately 1.5% of the deposit or guarantee amount paid to the underwriter as a once only premium before the bond is issued.
Wilson National can assist in arranging a deposit bond at the time of your loan application, click here to contact us
Wilson National was listed in Australia's Top Ten Lenders by Your Mortgage Magazine in 2006.
