Deposit Bonds

To be eligible for a standard deposit bond you MUST be:-

• An Australian Resident or an Australian Company or Trust
• Buying Residential Property
• Able to prove you can settle the property

There are 2 types of Deposit Bonds

• Finance backed(< 6 months)
• Equity backed( > 6 months)

NB: There are several ways of proving your financial capacity to settle. The method adopted varies with the term of the deposit bond required and the applicant’s circumstances. The forms and supporting documents required vary accordingly and are detailed below.

Finance Backed deposit bonds – Conditions and Documents to Apply

• You MUST provide:-
1. An accurately completed signed application form
2. Suitable Identification and proof of Australian residential status,
3. Copy front page of the Contract for Sale
4. Application Fee

AND

• You MUST also provide:-

An unconditional loan approval from a suitable lender and evidence of funds to complete.
OR
If you are selling to buy, you must provide proof of exchanged contracts (front page of contract for sale relating to the sale) and current loan statement.

NB: If your circumstances differ from those outlined above. Either use the same approach as the Equity Backed deposit bond applications (detailed below) or contact DBA to discuss your specific situation.

Equity Backed deposit bonds – Conditions and Documents to Apply

• You MUST provide an:-
1. Accurately completed signed application form
2. Suitable Identification and proof of Australian residential status
3. Supporting documentation - See different applicant categories below
4. Copy front page of Contract for Sale
5. Application Fee

• You MUST also supply documents to prove:-

Current income (personal and rental); AND
Asset ownership (property; public Company shares and cash deposits)

NB: The information you need to supply will be governed by your own circumstances. Refer details below

Documents to Prove Income
PAYG - Employees	Self Employed Individuals	Corporate Applicants	Low Doc
(1) Letter from employer or last two consecutive pay-slips	(1) Personal tax return for last year & must include ATO Notices of Assessment	(1) Full Financial Statements including: Last years Company Tax Returns, P&L & Balance Sheets. (2) Personal tax returns of Directors/Shareholders. (3) if a Trust, then a copy of the Trust Deed.	(1) Self Employment Declarations by Applicants and their Accountants

Documents to Prove Asset Ownership

Property - Current Year Rates Notice Share (Public Company) - Scrip or Current Broker Statement(s) Cash Deposits – Current Bank Statement(s) Superannuation or other Managed Funds – Current Statement(s)

Documents to Prove Outstanding Debt

Mortgages – Last 3 months loan statements Credit Card(s) – Current statement(s)

Guarantors – Conditions and Documents

• The three situations detailed below is when an applicant will need a third party guarantee:-


1. Existing asset(s) owned in joint names and new property is being purchased in one name only
2. Parental for equity purposes only (ie parents cannot guarantee income only help with asset strength)
3. Applicant is a corporate entity - Director(s) and/or Trustees must guarantee

• Guarantor(s) MUST:-


1. complete and sign the Application form and provide financial Statements
2. Complete and sign a Deed of Guarantee (which will be provided on the deposit bond approval).
3. provide Suitable Identification