So you have decided you want to purchase an investment property and do not want to tie up your cash by providing a 10% deposit. Leading Melbourne Mortgage Broker What If We Finance can provide a Deposit Bond to assist in this situation.

A Deposit Bond is a guarantee to the vendor (the seller of property) , by an insurance company or bank, that they will receive their 10% deposit, even if the purchaser defaults on the contract of sale. As a purchaser you are able to provide this guarantee to the vendor by paying a small premium to the insurance company.

Deposit bonds can be used in the following situations

• Where their current home is sold, however the funds are not yet available for the deposit

• Where the purchaser does not wish to pay the penalty for breaking a fixed investment or selling shares

• Where the purchaser may want to attend more than one auction before they decide which home to purchase

• Where the purchaser is an investor and the loan funds are not available until settlement

As a purchaser of property Deposit Bonds provide the following benefits:

• It’s cost effective

• Useful for asset rich/cash poor customers who wish to invest in property and already own their own home

• Purchasers don’t need to go to the expense and time delay of arranging short term finance for the deposit

• Convenient for home buyers who may have finance approval or assets tied up in other investments

• Purchasers can keep their own savings earning interest right up until the day of settlement

• Convenient at auctions

To find out more about Deposit Bonds please contact What If We Finance today.

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