:: Deposit Bonds
Shire First Mortgages are accredited with a number of deposit bond issuers. We can arrange your bond for you at the time of your loan application.
What is a Deposit Bond?
In Australia when a person or entity enters into a contract to purchase residential or commercial property it is common practice for the purchaser to lodge a cash deposit of up to 10% of the purchase price with the vendor’s solicitor as security for the purchaser’s obligations. The deposit gives the vendor (the seller) a fund against which they can claim if you fail to complete the transaction.
A Deposit Bond is an instrument that, by agreement with the vendor, can replace the need for a cash deposit. It is a convenient way of purchasing a property without the need to arrange a large cash deposit or immediately cashing in or selling an investment that may mature at some point in the future. The Deposit bond is issued by an insurer to the vendor for all or part of the deposit required.
If the purchaser fails to complete the purchase of the property and has used a Deposit Bond, the vendor or holder of the Deposit Bond has the right to present the Deposit Bond to the Insurer and claim the full amount of the Deposit Bond. The Insurer will then seek reimbursement from the purchaser for any monies paid by it plus any other costs and expenses.
Who can use a Deposit Bond?
The product is suitable for virtually anyone contemplating the purchase of a residential or commercial property. Subject to individual sales contracts, Deposit Bonds can be used to purchase:
- Homes & Investment Properties
- Commercial Properties
- Off the Plan
What do they cost?
The cost of the deposit bond will vary. It will be determined by
- the length of the bond (short or long term)
- the amount of the deposit
- the type of property being purchased (residential or commercial)
How long does a Deposit Bond take to arrange?
Providing we have all the information we need your deposit bond application will only take about 30 minutes to process with same day approval and issue.
How do I find out more information?
Contact us for a personalized quote or more general information on Deposit Bonds.
< Back
|
