Home Loan Information
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Buying vs Renting
Pre Purchase Home Inspection
Deposit Bond
Saving to Buy
10 Home Buyers Tips
You don't need 10% Deposit
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I have made several inquiries about Home Loan and only Steve took so much time and effort to assist me. Being a first home buyer, there where so many things that didn't quite understand and Steve patiently explained even the smallest details. The customer service given was beyond expectation and didn't end on the contract signing. Everyone in Loan Choice is outstanding! Debra, Nicole, Elise and Steve you really helped make my dreams come true.
Olga Angeles

A deposit bond is a guarantee to the Vendor equal to the amount of the deposit required. It effectively takes the place of a cash deposit between the time of exchange and settlement of the property.

It is quick, cost-effective and a convenient alternative to tying up your assets when needing to raise a deposit.

You can use a Deposit Bond to secure a property which may not settle for up to four years. This means you can continue to earn interest on your investments, avoid paying the high cost of a loan or securing a bank guarantee until it is time to settle the property.

Benefits for Purchasers:

  • Deposit Bonds are Unsecured (ie., No mortgages or charges are taken over property assets).
  • The Deposit Bond cost ranges between 0.3 and 1.255% of the purchase price and is calculated with respect to the term and value of the Deposit Bond required. This amount is paid once at the time of application. A fee is not charged if the applicant does not qualify for the deposit bond.
  • Deposit Bonds generally have proved to be more cost effective than using your own savings, bank guarantees or loan monies.
  • No loan approval is required to have a deposit bond issued on a bond with terms of 6 months or greater.
  • Turnaround Time - from receipt of a satisfactory completed application and supporting documentation to approve and issue is 24 to 48 hours.
  • Provides you with an opportunity to purchase the property of your choice whilst keeping assets untouched until needed at time of settlement.

Benefits for Vendors & Financiers:

  • Each applicant is assessed in accordance with current Retail Bank and Loan Mortgage Insurance policy which constitute the underwriting criteria for this product.
  • The mandatory requirement for DBA to issue is that each Applicant must prove they are bankable for the full purchase price plus costs.
  • Broadens the purchaser market as often purchasers may only have sufficient liquid assets for a 5% deposit, whilst a Deposit Bond representing a 10% deposit may be provided to approved applicants.

Benefits for Property Consultants:

  • Applicants are fully qualified as to their financial ability to complete the entire purchase.
  • Expedites exchange of contracts for sale which in turn accesses commission payments faster.

Benefits for Solicitors:

  • Expedites and streamlines the exchange process.
  • Eliminates delays in waiting for purchaser’s funds or bank guarantees, to become available.
  • By having a deposit bond this qualifies the purchaser’s financial ability to settle the property.