What is it?
A deposit bond (guarantee) takes the place of a cash deposit required when you are buying any property. It is an acceptable form of ‘deposit’ with most vendors & real estate agents.
Why use it?
Because it means you don’t need to raise the cash required for a deposit - especially if you are a first home owner and need 100% financing or are buying off-the-plan with settlement not due for another 2-3 years! More importantly, it means you can leave your deposit in your savings account to earn interest whilst waiting for settlement.
Deposit bonds can be used for no deposit home loans, long term settlements and more.
What types of Deposit bonds are there?
There are two broadly categorized deposit bonds, short term (settlement < 6 months) or long term (settlement >6 months to 4 years).
How much does it cost & take to issue?
Email or contact us for a free quote, but as a rule of thumb, it cost less to issue a deposit bond than it does to withdraw your hard earned cash deposit from your high interest savings account! (i.e. you are better off leaving your cash deposit in your high interest account!) It usually takes 48 hours from documentation to issue a deposit bond.
Does Smile Mortgages issue Deposit Bonds?
Just like we help find the best home loan provider for your mortgage, we do the same with your deposit bonds! So email/contact us!
