Deposit Bonds

Lending institutions provide deposit bonds to buyers so a buyer can secure the purchase of a property. These are usually used when a buyer cannot provide the cash immediately for a deposit on a property and the institution acts as a guarantor for the buyer.

Anyone who is purchasing a residential property can apply for a deposit bond, including first home buyers.

Why use a deposit bond?

Often, cash is tied up in the current home or in a fixed term deposit where breaking the term can mean a penalty is incurred. Deposit bonds can be a resourceful way of paying a deposit on a property without having to drastically rearrange your finances.

Auctions

A deposit bond can be used at auctions. The guarantee amount is fixed but not the property detail, which means you can confidently attend as many auctions as necessary until you secure the perfect property.

Cost

As a rough guide, expect to pay around $250 for a deposit bond of $20,000.

For further assistance contact us on 1800 111 455.