All Topics / Help Needed! / deposit bond or bank guarantee

Viewing 6 posts - 1 through 6 (of 6 total)
  • Profile photo of Sasha

    Hi there,

    Can anybody please tell me the difference between a bank guarantee and a deposit bond!?

    Thank you in advance.

    Sasha

    Profile photo of Kipper57Kipper57
    Member
    @kipper57
    Join Date: 2006
    Post Count: 252

    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 info@alphamortgagesolutions.com.au
    http://www.alphamortgagesolutions.com.au
    First home buyers, investors, refinace, loan consolidation, equity loans, free service we come to you!

    Profile photo of Sasha

    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.

    Profile photo of Sasha

    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.

    Profile photo of ducksterduckster
    Participant
    @duckster
    Join Date: 2004
    Post Count: 1,674

    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.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    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
    richard@tayloredfinancialsolutions.com.au
    New Shared Equity scheme has arrived – Email us for details.

    Richard Taylor | Australia's leading private lender

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

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