Myth Busters

27th Sep, 2021 | Branch News 28th September 2021

In this article:
Deposit bond myth busters from Deposit Assure.
lender_update

Top five deposit bond myths busted!

Getting a deposit bond can take a few days and I don’t have time as my client needs to exchange today – FALSE

Did you know that Deposit can process an application and dispatch a digital deposit bond in as little as an hour?

My client has found a property they want to purchase but we don’t have a finance approval in place yet, so I won’t be able to obtain a deposit bond – FALSE

If you don’t have a finance approval in place, a deposit bond can still be issued using income and equity assessment. The quick rule for eligibility: Where settlement is less than 6 months, 2 x the bond amount in equity needs to be verified.

My client is a first home buyer and doesn’t own any property so we won’t be able to use a deposit bond without a Finance Approval in place – FALSE

An immediate family member as a guarantor can be added for the Deposit Bond, they will just need to sign a separate Guarantor statement.

My client is going to an auction, so they won’t’ be able to use a deposit bond – FALSE

Deposit Assure can issue auction deposit bonds that are open deposit bonds up to 10% of a client’s max purchase price. Auctions bonds can be used at Auction or for private negotiations.

When do clients pay back the deposit bond? – FALSE

The role is to “guarantee” your clients for the deposit bond amount right up until they get the funds at settlement.  The only money that is exchanging hands is the deposit bond fee, which will need to be paid upfront.

For any questions, please reach out to your BDM.

 

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