Who Issues Commercial Deposit Bonds?
Deposit Bond Australia (‘DBA’) is also authorised to approve and issue A+ rated QBE Commercial Deposit Bonds.
What is a Commercial Deposit Bond?
QBE Commercial Deposit Bonds issued by DBA are also a financial guarantee accepted as a legal substitute for the cash deposit needed when Individual or Corporate (company, trust or superfund) Purchasers are buying commercial property.
Acceptable property types include commercial, industrial, retail and rural residential properties. Additionally residential property including vacant landholdings earmarked for subdivision or development are categorised as commercial purpose.
QBE & DBA are the longest standing Underwriter & Agent Deposit Bond team in Australia with over 4 decades of collective experience issuing Commercial & Residential Deposit Bonds
QBE’s A+ (Stable) rating QBE Commercial Deposit Bonds are accepted nationwide by major Lenders & Vendors for all terms & significant values
QBE is the sole onshore Underwriter of Commercial Deposit Bonds regulated by APRA
Additionally, DBA is 100% Australian owned & operated with customer information securely stored onshore.
What Value & Terms of Commercial Deposit Bonds are available?
Ranges from $50,000 to $2.5million per individual Commercial Deposit Bond
Individual Applicants for terms from 3 – 48 months; and
Corporate Applicants for terms from 3 – 24 months
Benefits to Purchasers?
Commercial Deposit Bonds like residential deposit bonds are unsecured financial guarantees. This means no mortgage document is required which preserves an efficient application & issuance process.
Subject to application complexity approval can be within 2-5 business days from lodgement.
Committing to buy commercial property with a deposit bond ensures that there is no need to draw on existing lines of credit or sell other assets which can be left intact readily available for settlement.
The single fee payable upon approval is calculated on value & term of the deposit bond which ranges from 2-4% pa
Deposit Bond fees are not tied to interest rates which means the Purchaser is protected from market fluctuations.
As an unsecured guarantee the pricing compares very favourably with commercial lending rates.