What is a Deposit Bond? Why would I want one?
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A ‘Deposit Bond’ acts as a substitute for cash and you can use the bond when exchanging contracts, including at auctions.
For a small fee (several hundred dollars normally), you and your lender agree a maximum amount that you can use as a deposit to buy and you don’t need to use your cash. The Deposit Bond works like a guarantee. It’s your lender’s way of saying ‘we’ll pay this deposit at settlement, instead of now’
It gives you the freedom to concentrate on finding the right property - and keeps your deposit savings earning interest, right up until the day of settlement.
Your Lender can arrange this as part of your pre-approval