May 01, 2017
Not many people are aware about deposit bonds and how they can help you when purchasing a property. Mortgage Choice Northern Rivers is here to explain exactly what they are and how they work.
A deposit guarantee acts as a substitute for the cash deposit required by the purchaser between signing a contract of sale and settlement on a property. A deposit bond works as a guarantee of the deposit payment and at the time of settlement, the purchaser simply pays the full purchase price including the deposit.
Deposit guarantees usually have the flexibility to work with your needs, for instance you can be issued a deposit guarantee for up to 10% of the purchase price, as well as being able to be issued to purchase most types of properties with settlement terms. This is because most registered properties settle within 6 months, but not all. Some require up to 48 months when they are unregistered properties, vacant lands, properties under construction and off the plan purchases.
Everyone who is buying a property can benefit from using a deposit bond.
Some of the circumstances where one might come in handy include:
1. buying a home
2. If you're a first home buyer
3. Buying an investment property
4. Buying a commercial property
5. Upsizing or down sizing
6. Selling and buying a property at the same time
7. Asset rich but cash poor
8. Waiting for a gift
If you would like to know more about deposit bonds or require assistance in applying, call the team at Mortgage Choice Northern Rivers on 66847096 and let us assist you at no cost to you.