Who uses Deposit Guarantees

Deposit Guarantee

 

Any property buyer who is looking for a quick and easy alternative to the cash deposit payable when purchasing residential or commercial property can take advantage of a Deposit Guarantee (also commonly referred to as a Deposit Bond).

Property buyers who have money tied up elsewhere, for example in shares, term deposits or other investments and who would rather leave those investments earning a good return until they are ready to settle on their property.

Property buyers who are looking for a low cost alternative compared to other options such as overdrafts or bridging finance.

Home and apartment owners selling and buying at the same time and whose equity is tied up in their existing property.

Downsizers who are selling to buy elsewhere and who are asset rich but cash poor.

Purchasers buying at auction who may prefer the convenience of not having to put aside funds for the deposit each time they attend an auction.

Investors not wanting to tie up their cash before settlement so that they can keep it working harder elsewhere or who have equity tied up in an existing home or investment property.

First Homebuyers looking to buy their first property.

Purchasers buying Off-the-Plan benefit by using a Deposit Guarantee as it avoids the need to have cash deposit funds tied up until settlement.

If you’d like a fee quote, please make contact with me.

 

Buying a Home

Deposit Guarantees can be used to purchase most types of residential property including:

  • Established properties such as houses, units, townhouses and villas.
  • House and Land packages.
  • Vacant Land.
  • Properties under construction.
  • Off-the-Plan properties.

First Homebuyers

A Deposit Guarantee can help First Homebuyers looking to buy their first property particularly when they may not have the full cash deposit available to them when entering into a contract to purchase. If the vendor requires a full 10% deposit but the first homebuyer does not have immediate access to cash then a Deposit Guarantee can help secure the property. This also applies when the First Homebuyer is seeking help from family with their deposit or for family to act as guarantors of a home loan.

Another benefit is for first homebuyers who may not be able to afford the deposit without an applicable government grant, which cannot be accessed until settlement. A Deposit Guarantee is an effective way to help manage this process.

Investment Property Buyers

Deposit Guarantees are a great tool for investors looking to defer payment of the cash deposit until settlement, particularly when they are borrowing 80% to 100% of the purchase price. Investors are able to purchase most types of residential and commercial property using a Deposit Guarantee.

New Home & Land Buyers

Deposit Guarantees can be used to purchase new homes and both registered and unregistered vacant land that will be registered in the future.  (Additional terms and conditions are associated with unregistered land).

Commercial Property Buyers

Deposit Guarantees can be used to buy commercial or business use properties such as individual factory units, retail, office and storage space, commercially zoned vacant land and general business premises.

 

Contact me if you’d like a fee quote on any Deposit Guarantee scenario.

 

Jason Thomson is a Cairns based Mortgage Adviser and Finance Broker with clients all around Australia. 130+Client Reviews featured on his website proves that Jason is a trusted industry professional. Using his wealth of experience in financial services, he thrives on delivering superior service. Jason is very approachable and is always looking for new clients to help in the often confusing world of finance and property.

 

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