Deposit Bonds

Deposit Bonds

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So you have decided you want to purchase an investment property and do not want to tie up your cash by providing a 10% deposit. Leading Melbourne Mortgage Broker What If We Finance can provide a Deposit Bond to assist in this situation.

A Deposit Bond is a guarantee to the vendor (the seller of property) , by an insurance company or bank, that they will receive their 10% deposit, even if the purchaser defaults on the contract of sale. As a purchaser you are able to provide this guarantee to the vendor by paying a small premium to the insurance company.

Deposit bonds can be used in the following situations

Where their current home is sold, however the funds are not yet available for the deposit
Where the purchaser does not wish to pay the penalty for breaking a fixed investment or selling shares
Where the purchaser may want to attend more than one auction before they decide which home to purchase
Where the purchaser is an investor and the loan funds are not available until settlement

As a purchaser of property Deposit Bonds provide the following benefits:

Its cost effective
Useful for asset rich/cash poor customers who wish to invest in property and already own their own home
Purchasers dont need to go to the expense and time delay of arranging short term finance for the deposit
Convenient for home buyers who may have finance approval or assets tied up in other investments
Purchasers can keep their own savings earning interest right up until the day of settlement
Convenient at auctions

To find out more about Deposit Bonds please contact What If We Finance today.


About the Author:
Leading Melbourne Mortgage Broker What If We Finance can provide a Deposit Bond to assist you. To find out more about Home Loans and Deposit Bonds please contact What If We Finance today.



Article Originally Published On: http://www.articlesnatch.com


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