A deposit bond is a guarantee to the Vendor equal to the amount of the deposit required. It effectively takes the place of a cash deposit between the time of exchange and settlement of the property.

It is quick, cost-effective and a convenient alternative to tying up your assets when needing to raise a deposit.

You can use a Deposit Bond to secure a property which may not settle for up to four years. This means you can continue to earn interest on your investments, avoid paying the high cost of a loan or securing a bank guarantee until it is time to settle the property.

Benefits for Purchasers:

• Deposit Bonds are Unsecured (ie., No mortgages or charges are taken over property assets).

• The Deposit Bond cost ranges between 0.3 and 1.255% of the purchase price and is calculated with respect to the term and value of the Deposit Bond required. This amount is paid once at the time of application.
  
• Deposit Bonds generally have proved to be more cost effective than using your own savings, bank guarantees or a loan.
  
• No loan approval is required to issue Deposit Bonds with terms of 6 months or greater.
  
• Turnaround Time - from receipt of a satisfactory completed application and supporting documentation to approve and issue is 24 to 48 hours.
  
• Provides you with an opportunity to purchase the property of your choice whilst keeping assets untouched until needed at time of settlement.