how do i get a deposit bond?

Hi Misty

Not all banks offer deposit bonds, and certainly very few offer low doc deposit bonds. I was looking for one a little while ago and the best I found was as follows:

The Deposit Bond Centre. The bond fee was $572 for 3 months (minimum term) on an amount of $22,000. Make your own enquiry to find out how much it will cost you. The person to talk to is:

Kimball Werner
Mostly Mortgages Group
Ph 0412 64 0002
Fx 02 9279 0017

You’ll need the following to apply:

100 points ID for each applicant (passport & drivers licence)
Copy of the front page of contract of sale
Copy of unconditional finance approval and/or evidence of funds to complete – cash, line of credit etc
Signed original application & payment details (Visa/MasterCard/Bank Card)

They can usually arrange the bond within 24 hrs of receiving the full application and supporting documents. Urgent bonds can be approved in 3-4 hrs.

Also try doing a search on the internet, as you may find others. I didn’t end up needing the deposit bond so didn’t pursue all avenues.

Hope this helps.

Janet
0427 778875

hi misty[biggrin]

You will have to ask the auctioneer before the Auction if the Vendor would accept a deposit bond.

My guess is that they would not, as auctions by nature are aimed at people who can 100% commit with a 10% cash/cheque deposit then and there.

I don’t like auctions myself. I prefer flexible terms from Vendor.[cool4]

Deposit Power are another mob that do deposit bonds within 24hours 1800 115 222.

They wan’t help if you buy using a trust and are real pains in the keesh if you buy using a company structure! I got caught out before.

Deposit bonds are handy when buying “private sale” but does weaken your offer as vendors prefer cash deposit. You will need to do some fast talking to get it over the line.

Use cash if you have it available, and you will nearly always be able to get the same property cheaper!

You also need full approval for the Loan before the deposit bond can be issued. Banks can take their time giving you full approval, up to 30 days. So it is nearly impossible to buy at auction with a deposit bond.

In fact I would love to hear from anyone that has ever done it?

Be careful, I have been caught in the middle of a “oh no, we can’t actually give you a deposit bond even though we told you before that we would” dilemma before, it’s not much fun.

Lifexperience

hi Misty1
deposit bond for me are used when purchasing off the plan and not sure if anyone would accept at an auction
because the vendor wants a to know you can purchase at the price knocked down and be you can finalise the purchase and for me a deposit bind would not give me that security and the real estate would know that also.
bonds are relatively good to purchase where you want to minimise your exposure to a deal and still finalise with the min of you money in the deal.
yes cash and other formula is alot better then deposit bonds and have used them except as pre sales for some time.
hope this helps
my .002

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Mum,
Well, there you go. I suppose anything is possible.
By offering finance and deposit bonds at the one place, you have probably overcome the headache that I experienced sourcing a deposit bond from somewhere separate to the lender. I had to make many frantic phonecalls and pull a few strings to get it done in under 14 days (Even though I had preapproval). I think Auctions are usually less than 7 days to come up with deposit.
The delay was in the speed that documents were processed at the Bank. A pre-approval is not a full approval (not including valuation and COS) until the appropriate documents are stamped by various people at the Bank…

cheers

Lifexperience