What is a Deposit Bond?
A deposit Bond (or Deposit Guarantee) is a simple and cost effective alternative to providing a cash deposit when purchasing a property. They are particularly useful if you are buying a property at auction or borrowing 100% of the purchase price. Using a Deposit Bond means you don’t need to keep a significant sum of cash on hand for what could be a prolonged period of time. They are able to move quickly to purchase.
Deposit Bonds are also an excellent solution for investors who don't have cash at their disposal and don't want to cash in investments such as shares. Also for many borrowers, short term finance is costly and time consuming involving additional fees, high interest rates and delays in processing.
How does a Deposit Bond through TCIS Financial Services work?
Lawfund can simplify the process of buying and selling property for you. Here's how it works:
1. You find a property and agree a sale price.
2. You need to ensure that they have sufficient funds to complete the purchase ie loan approval plus savings.
3. You apply for a Deposit Bond through TCIS Financial Services.
4. TCIS Financial Services works with Deposit Power to issue a Deposit Bond.
5. You then sign a contract including the Deposit Bond details and any other conditions.
6. The Deposit Bond will then be given to the stakeholder - normally your conveyancer/solicitor as a deposit commitment.
7. Settlement occurs with full purchase price being paid, including the amount represented by the Deposit Bond.
8. You enjoy ownership of your new property- stress free!
Remember Deposit Bonds are a simple, easy process in ensuring you experiences a hassle free cost effective alternative in funding your deposit when purchasing a property
Adelaide
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