Often purchasers may not have ready access to the cash deposit required to secure a property. When a property has been located and a purchase negotiated a deposit bond or deposit guarantee can be used to secure the purchase in lieu of a cash deposit.

As long as you can demonstrate you have the funds available at settlement a deposit bond can place you in a position to secure the perfect home or investment property quickly, without using a cash deposit.

The most common form of deposit bond in a short term deposit guarantee which suit settlement terms of up to 6 months and is suitable for all types of residential property including vacant land.

Long term guarantees can suit settlement terms from 6 to 48 months, and can be for when you are buying properties off the plan, under construction or vacant land with extended settlements.

Remember that to apply for a deposit bond or deposit guarantee we must be able to prove to the insurer that the funds are available to pay the purchase price in full at settlement such as proof of sale of an existing property, cash in bank, unconditional loan approval etc.

Quick & Easy

Deposit bonds can be organised either directly through Ability Finance or your lending institution. Most applications are processed within 24 hours.

The deposit bond guarantee terminates on settlement of the property, when the contract is terminated, rescinded or the expiry date has passed, whichever occurs first. It also terminates when a claim is paid by the deposit bond supplier.

Alternative to Short Term Finance

For many people, short term finance is costly and time consuming involving additional application fees, high interest rates and delays in processing. Deposit bonds can usually be arranged much quicker and for less cost than bridging finance loans.