deposit bond or bank guarantee

Viewing 6 posts - 1 through 6 (of 6 total)

Sasha
Participant
@sasha-strampic
Join Date: 2006
Post Count: 4
February 22, 2007 - 1:58 pm
Hi there,
Can anybody please tell me the difference between a bank guarantee and a deposit bond!?
Thank you in advance.
Sasha
Sasha
Email Me
Kipper57
Member
@kipper57
Join Date: 2006
Post Count: 252
February 23, 2007 - 2:38 am
A deposit bond is a written guarantee that substitutes the 10% cash deposit traditionally required to purchase a property (Note you can usually get away with only paying a $1000 deposit if negotiated when signing the contract however; this may secure the property if there is a lot of competition). Applicants can apply for a deposit bond and if you are approved you will be required to pay a premium (fee) for the bond. The deposit bond premium is a one off fee that replaces your 10% deposit and secures the property until settlement. If you do pull out and do not pay the deposit, it will be paid by the bond provider. They will then seek reimbursement + costs etc from the debtor
Where as a bank guarantee, is issued by a lending institution ensuring that the liabilities of a debtor will be met. If the debtor fails to settle a debt, the lender will cover it. A bank guarantee enables the customer (debtor) to acquire goods, secure a property, secure a lease, buy equipment, or draw down loans. Again the lender will seek compensation from the debtor
Wayne
Mortgage Adviser
Email [email protected]
http://www.alphamortgagesolutions.com.au
First home buyers, investors, refinace, loan consolidation, equity loans, free service we come to you!
Sasha
Participant
@sasha-strampic
Join Date: 2006
Post Count: 4
February 26, 2007 - 8:48 am
Thanks again Wayne,
I have 200K in equity and i am interested in buying of the plan with settlement mid 2010. The purchase price is 695K. I think a deposit bond is the way to go as I don’t want to tie up my equity.
Can anyone help me achieve this!?
Cheers,
Sasha.
Sasha
Email Me
Sasha
Participant
@sasha-strampic
Join Date: 2006
Post Count: 4
February 26, 2007 - 8:50 am
Thanks again Wayne,
I have 200K in equity and i am interested in buying of the plan with settlement mid 2010. The purchase price is 695K. I think a deposit bond is the way to go as I don’t want to tie up my equity.
Can anyone help me achieve this!?
Cheers,
Sasha.
Sasha
Email Me
duckster
Participant
@duckster
Join Date: 2004
Post Count: 1,674
February 26, 2007 - 10:50 am
take a look at this company
http://www.depositpower.com.au/
This is who I would recommend to my clients
Duckster Financial Services
http://www.ducksterfinancial.com
Helping to make the great Australian Dream come true !
Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
February 26, 2007 - 3:02 pm
Yes we use either Deposit Access operated through QBE or GE ‘s Deposit Access.
Both products will go upto a maximum of 48 months.
Be happy to help with your application.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
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Richard Taylor | Australia's leading private lender