Hi all,
We are looking at purchasing a property at auction soon. We have spoken to our mortgage broker who assures us we have plenty of equity to use as a deposit.
However, what are the logistics of getting a deposit for the night of the auction? Does the approved equity loan get paid into our bank account BEFORE we actually purchase the property (so we can use as a deposit) (sounds unlikely)…OR do we get a line of credit loan to tap into the equity and raise a deposit??
How does this situation work?
Many thanks
Marcus
Once the "top-up" on your loan has settled, the funds will become available. If they are not available before the auction – you can look at getting a deposit bond.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
great, thanks Jamie. So I don't need to worry about dipping into my savings for the deposit? Cheers
As Jamie mentioned, you need to apply for a deposit bond, as a equity release takes 1-2 weeks ( to access the funds)…and no you don’t need to dip into the savings.
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
great, thanks for all your help!!
Just note a deposit bond is not free
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Hi mg
You can use this calculator for a quote https://www.depositpower.com.au/webapp/depositpower/guaranteeQuote.do?country=au&brand=vero
There are two major companies – deposit power and deposit access.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Why not just get a Line of credit attached to the existing IP? Then you can just take the money when you want?
I think he/she is in the process of getting one but it hasn't settled yet.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Make sure that the vendor will accept a deposit bond as many won't. 10% cash is standard
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Terryw wrote:Make sure that the vendor will accept a deposit bond as many won't. 10% cash is standardYes, I second this.
I was bidding at an auction on behalf of a client in Leichhardt a few months ago and another bidder was trying to register but was turned away by the auctioneer, as he was wanting to use a Deposit Bond.
This was not acceptable to the vendor on the day. The intending purchaser should have sought approval 1 – 2 days beforehand.thanks for that. I have checked and the vendor will accept a deposit bond. It needs to be pre-approved before hand though (as some posters have suggested)
Thanks alot
mg
Hi mg
You'll need to have a bank approval in place in order to receive a deposit bond anyway. Allow enough time to get this sorted – they say they'll turn them around within 24 hours but if they require additional documentation it can slow things down a little.
Best of luck with the auction.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
You must be logged in to reply to this topic. If you don't have an account, you can register here.
