Frequently asked questions
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I don’t have any savings or investments and I don’t own a property. Can I use a deposit bond to purchase a property?
No. A deposit bond doesn’t replace the need to have a deposit. You still need to prove to the deposit bond issue that you have the capability of settling on the property.
Will the issuer of the deposit bond take my property as security?
No. Deposit bonds are unsecured.
How long does it take to obtain a deposit bond?
A short term bond can usually be issued within 24 hours. A long term bond can take up to 48 hours to issue.
Do I need to have a loan approval in place to obtain a long term deposit bond?
No. When applying for a long term deposit bond the issuer will require extra documentation from you such as evidence of income and savings and will do some calculations to determine whether you have the financial ability to qualify for a loan at the time of settlement and can therefore complete the purchase.
I have signed an unconditional contract of sale to purchase a property and I have used a deposit bond in lieu of cash. I no longer wish to proceed with the purchase and want to pull out of the contract. What will happen?
Firstly you would need to seek legal advice before reneging on a contract. If you were to default on the contract the vendor could seek payment of the deposit from the deposit bond issuer. The deposit bond issuer would then seek reimbursement of
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