Deposit Bonds

So you have decided you want to purchase an investment property and do not want to tie up your cash by providing a 10% deposit. Leading Melbourne Mortgage Broker What If We Finance can provide a Deposit Bond to assist in this situation.
A Deposit Bond is a guarantee to the vendor (the seller of property), by an insurance company or bank, that they will receive their 10% deposit, even if the purchaser defaults on the contract of sale. As a purchaser you are able to provide this guarantee to the vendor by paying a small premium to the insurance company.
Deposit bonds can be used in the following situations
• Where their current home is sold, however the funds are not yet available for the deposit
• Where the purchaser does not wish to pay the penalty for breaking a fixed investment or selling shares
• Where the purchaser may want to attend more than one auction before they decide which home to purchase
• Where the purchaser is an investor and the loan funds are not available until settlement

As a purchaser of property Deposit Bonds provide the following benefits:
• It's cost effective
• Useful for asset rich/cash poor customers who wish to invest
• in property and already own their own home
• Purchasers don't need to go to the expense and time delay of
• arranging short term finance for the deposit
• Convenient for home buyers who may have finance approval or assets tied up in other investments
• Purchasers can keep their own savings earning interest right up until the day of settlement
• Convenient at auctions

To find out more about Deposit Bonds please contact What If We Finance today.