Deposit Bonds Australia.
Information portal to help you get the information you need when considering a deposit bond to purchase property.
Deposit Bonds Australia.
What are they and when and where can I use a Deposit Bond?
Deposit bonds are financial instruments that allow people to place a deposit down on a property of up to 10% instead of you the purchaser having to find the cash quickly.
These are sometimes referred to as Bank Guarantees or Deposit Guarantees because they are backed by an insurance policy that acts as a guarantee that the deposit is paid at settlement.
Why Use Deposit Bonds?
With a very fast turnaround from application submission to approval, you can move quickly and confidently when wanting to purchase a property. Removes the hassle of having to organise large amounts Cash via Loans, Bridging Finance, Substitution of Security or having to close out term cash investments, shares and so on.
Deposit Bonds for “OFF the Plan” purchasers are ideal as you get to keep your cash working for you and not being used elsewhere by developers while being protected if the Developer goes under or there are any other unforeseen circumstances that may affect settle of the property.
OTP Deposit Bonds are issued from a term of 12 months or longer, depending on the circumstances.
With OTP bonds, some companies such as Aussie Bonds allow for refunds if the settlement is early, make sure you read the conditions that apply to refunds regardless of which company you use.
High-level authority if backed by QBE, and this is a Faster & Smarter option than using cash or having to organise bank guarantees.
Once the property settles the Deposit Bond Certificate is paid in full.
Buying An Established Property
Are you buying an established property or Black of land that is already registered. You will either need Finance Approval or Already own Australian property.
Our team will teach you the art of writing audience-focused content that will help you achieve the success you truly deserve.
We help small businesses build their digital presence by focusing on three key elements of a successful online platform.
Who Can Use and Where Can You Use Deposit Bond?
Residential Properties, Commercial, Vacant Land, Land & House Packages, Sell and Buy / Downsize, Individuals, Super Funds, Trusts, Companies.
The How When & Why.
Are you an investor with lots of Equity but little Liquidity, then a deposit bond may be the perfect solution for you?
Did you know that deposit bonds have been available in Australia for more than twenty years? As the Australian property market started to boom, banks needed a faster way and a more streamlined way to allow customers to get a property deposit.
In the year 2000, while we are all waiting for our computers to crash, QBE was way ahead of the game introducing deposit bonds into their product mix, seeing the strong potential in property growth. QBE has been around for over 100 years and is the underwriter for many deposit bonds being issued in Australia. QBE has an A+ Rating, and many developers insist that deposit bonds being used as a deposit need to be backed by QBE.
Deposit Bonds are accepted in NSW, Victoria, South Australia, Western Australia, Northern Territory, A.C.T, Tasmania as well as Queensland.
However, before applying for a deposit bond it’s advisable to consult with your legal people such as a conveyancer or the vendor directly to see if they will accept the bond guarantee.
There is only one piece of legal advice appearing on this web site, and here it is:
Before you do anything involving real estate you must personally seek legal advice from a qualified legal practitioner.
All other material contained o this page and anywhere else of this web site is for general information only and is provided for the purposes of alerting consumers to some of the risks, responsibilities and procedures associated with Deposit Bonds within Australia.
Please be aware the general information on this page will change from time to time, it should never be relied upon as your only source of information.