Your Alternative to Cash Deposits Made Simple
Seamlessly Secure Your Next Property with a Deposit Bond
When you’re ready to take the leap into property ownership but find your deposit isn’t immediately on hand, a deposit bond can be the lifeline that bridges the gap. Ideal for when your funds are tied up or simply not readily accessible, deposit bonds assure sellers you’re serious, without the stress of liquidating assets in a rush. Explore how a small premium to an insurer can stand in for the traditional 10% cash deposit, helping you lock in that dream property today.
A Flexible Solution for Your Property Purchase
Unlock the Advantage of Deposit Bonds
Deposit bonds come into play in various property-buying scenarios, offering a flexibility that cash deposits can’t match. They’re a way of assuring sellers you’re good for the purchase without the immediate need to free up your cash. Here’s how a deposit bond could be the right fit for you.
Some typical situations where you may need to use a deposit bond include
- The vendor requires a 10% deposit but you only have 5% and you are borrowing 95% of the purchase price
- You have the deposit but it is tied up in investments and will take too long to liquidate
- Your deposit is coming from the proceeds of the sale of another property that is either settling before the purchased property or at the same time
- You have the deposit funds sitting in a term deposit but you will incur a penalty if you withdraw those funds
You are borrowing 100% of the purchase price using equity in another property but those funds won’t be available until settlement.
Types of Deposit bonds
At Mortgage World Australia we can assist you with the following types of home loans
Short term deposit bonds
Perfect for when your settlement period is within 6 months. A short-term deposit bond might be right if you expect quick completion of your property purchase or sale. You’ll need to show evidence of finance approval, but it’s a straightforward process designed to keep your purchase moving smoothly.
Long term deposit bonds
Suited for settlements longer than 6 months and up to 48 months, these bonds offer flexibility for more complex purchasing scenarios, such as off-the-plan buys or when you’re awaiting the sale of another property. While the approval process is more detailed, finance approval isn’t always necessary upfront, giving you more room to plan your finances.
Short term deposit bonds
▪ Maximum settlement period of 6 months
▪ Evidence of finance approval is required
Long term deposit bonds
▪ Maximum settlement period of 48 months
▪ Finance approval isn’t needed but a more stringent approval process if followed
FAQs
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