A deposit bond is a guarantee issued by an insurance company that can be used as a substitute for a cash deposit when purchasing a property, deferring the need to use our cash up front. Upon settlement of the property purchase you will be required to pay the full purchase price of the property and associated purchase costs.
To qualify for a deposit bond you need to show you are able to complete the purchase by one of the following methods:
- Providing a copy of a loan approval that confirms you have access to sufficient funds to complete
- Providing evidence that you own other properties with significant equity in them, as well as proving you have the financial capability to qualify for any loan required to complete the purchase.