Deposit Bonds
When do you need one?
1. When you only have 5% deposit or less saved up, but the real estate agent wants 10% to secure the property for you.
2. When you are borrowing 100% of the purchase price and costs by using the equity you have in another property
3. You have your 10% deposit invested but you don't want to use it during the weeks that the contract is between 'exchanged' and 'settlement'
Your Wilson Financial consultant can arrange a deposit bond for you.
What is a deposit bond?
A deposit bond is a guarantee, which can be a substitute for a cash deposit when signing contracts on the purchase of a property. It covers you from the
period of signing contracts up to the day of settlement (usually 6 weeks later), when your loan has been set up and the full balance must be paid to the
seller.
If you default under the contract of sale for the purchase of the property and will forfeit your deposit, this amount may be claimed from the seller from the insurance company, which has issued the bond.
Cost of a bond
A deposit bond is relatively inexpensive, especially when you consider the cost involved in using your own funds or borrowing funds (interest). A
deposit bond costs around 1.2% of the amount of the bond. For example on a purchase price of $300,000 you will need a deposit bond of $30,000 (10%) and this will have a premium of approximately $360.
Who will you get our deposit bond with?
Wilson Financial is an accredited agent for Deposit Power www.depositpower.com.au who will issue your deposit bond via express post within 24 hours of loading the application online. Often Deposit Power will fax a copy of the guarantee within minutes of your application being approved.
What we cannot do:
Wilson Financial cannot arrange a deposit bond for you unless we have arranged your finance through one of our banks. You can still approach a bank or Deposit Bond issuer directly to obtain a deposit bond. At present Wilson Financial does not assist with deposit bonds that need to be valid for more then 6 months due to the scarcity and risks involved with these products.
ACN 104 107 084 - Elizabeth Wilson & Associates Pty Ltd
Elizabeth Wilson & Associates Pty Ltd is a registered credit representative (CRN #383371) of Astute Financial Management Pty Ltd - Australian Credit Licence Number 364253
When do you need one?
1. When you only have 5% deposit or less saved up, but the real estate agent wants 10% to secure the property for you.
2. When you are borrowing 100% of the purchase price and costs by using the equity you have in another property
3. You have your 10% deposit invested but you don't want to use it during the weeks that the contract is between 'exchanged' and 'settlement'
Your Wilson Financial consultant can arrange a deposit bond for you.
What is a deposit bond?
A deposit bond is a guarantee, which can be a substitute for a cash deposit when signing contracts on the purchase of a property. It covers you from the
period of signing contracts up to the day of settlement (usually 6 weeks later), when your loan has been set up and the full balance must be paid to the
seller.
If you default under the contract of sale for the purchase of the property and will forfeit your deposit, this amount may be claimed from the seller from the insurance company, which has issued the bond.
Cost of a bond
A deposit bond is relatively inexpensive, especially when you consider the cost involved in using your own funds or borrowing funds (interest). A
deposit bond costs around 1.2% of the amount of the bond. For example on a purchase price of $300,000 you will need a deposit bond of $30,000 (10%) and this will have a premium of approximately $360.
Who will you get our deposit bond with?
Wilson Financial is an accredited agent for Deposit Power www.depositpower.com.au who will issue your deposit bond via express post within 24 hours of loading the application online. Often Deposit Power will fax a copy of the guarantee within minutes of your application being approved.
What we cannot do:
Wilson Financial cannot arrange a deposit bond for you unless we have arranged your finance through one of our banks. You can still approach a bank or Deposit Bond issuer directly to obtain a deposit bond. At present Wilson Financial does not assist with deposit bonds that need to be valid for more then 6 months due to the scarcity and risks involved with these products.
ACN 104 107 084 - Elizabeth Wilson & Associates Pty Ltd
Elizabeth Wilson & Associates Pty Ltd is a registered credit representative (CRN #383371) of Astute Financial Management Pty Ltd - Australian Credit Licence Number 364253
