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Deposit Bonds

There are many reasons why you could benefit from a deposit bond:

  • Borrowing 100% of the purchase price with the loan funds only available at settlement;
  • Purchasers who do not have the cash deposit when entering into a contract of sale;
  • Purchasers or investors who have their assets tied up in property and are cash poor;
  • Buying and selling simultaneously;
  • Your cash is working harder for you elsewhere, like your offset account and it can make financial sense to use a deposit bond instead.
Deposit Bonds

Auction Deposit Bonds

So we get it, you may be unsuccessful in your attempts to secure the property you want at auction. Therefore, we make it super easy for you and issue you with an auction deposit bond that can be re-used for multiple auctions and properties within the purchased timeframe until you are finally successful!

The auction bond is issued without the vendor’s names, the property address and the final purchase price. Think of it as an open deposit bond – preapproved up to 10% of your maximum intended purchase price.

Once successful at Auction you can:

  • Show the real estate agent the preapproved auction deposit bond on your phone;
  • The auction bond can be verified by the real estate agent with their camera, by scanning the QR code;
  • Upload a copy of your Contract of Sale to Deposit Assure by clicking here. Deposit Assure will then update your Auction deposit bond with the details of your purchase and issue a new deposit bond to all parties.
Auction Deposit Bonds

We strongly recommend you speak to the auctioneer, real estate agent or vendor’s legal representative before the auction to confirm they will accept a deposit bond in lieu of cash.
How long should I get the deposit bond for?

An auction deposit bond can be purchased for a 3 or 6 month term only, and for any deposit bond under 6 months the one-off fee is 1.3% of the deposit amount required.

The deposit bond can be extended if the settlement date goes beyond the Expiry Date on the deposit bond. A one off admin and processing fee of $200 will be charged to obtain a extension.

Auction Deposit Bonds

Application Process

  • You will get a pre-approval within 15 minutes.
  • Your application will be sent to you within 1 business hour for esigning with Docusign
  • Once your application is signed and payment is made, your Deposit Bond will be dispatched within 1 business hour.
  • Settling in under six months, the one-off Deposit Bond fee is 1.3% of the deposit amount required.
What are Deposit Bonds?

A Deposit Bond allows a buyer to pay a deposit (up to 10% of the purchase price) using the deposit bond instead of using cash from their own accounts. No money actually changes hands until settlement. Come settlement, the purchase price is paid in full, and the bond simply lapses.

How much is a Bond Deposit?

The cost of a Bond Deposit depends on the property value and the length of time to settlement. At the very least you can pay 1.3% of the purchase price of the bond. It’s a one-off fee that’s usually partly refundable if you don’t use it. e.g. you’re buying a home for $500,000 and need a 10% deposit of $50,000.

How do I get a Deposit Bond?

To be eligible for a Deposit Bond, you or your guarantor will need to own a property with some equity.

Are Deposit Bonds risky?

It is important to remember that the purchaser remains responsible for completion of the contract, including the payment of any costs and penalties associated with a default. The deposit bond is simply a means by which the vendor can be assured that a sale to the purchaser with the Deposit Bond is safe.

Who provides a Deposit Bond?

Deposit bonds are provided by Deposit Assure and are backed by QBE Insurance, used in NSW, QLD and partially in Victoria as well.

How long is a Deposit Bond good for?

A Deposit bond is usually good for six months.

Application Process

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