DBA issued A+ rated QBE DEPOSIT BONDS for FIRST HOME BUYERS
If you can prove your financial capacity to settle then DBA can HELP!
- Saved 5% however Vendor requires 10% Deposit to Exchange
- Formal loan approval for 95% purchase price + 5% genuine savings + FHB Grant or subsidies to cover settlement costs
- No Loan approval in place. Hold 5% genuine savings. Deposit Bond application can be supported by a parental guarantee. Vendors accept Combination Deposits comprised of 5% Cash + 5% Deposit Bond
- Reliant on Government Guarantee Scheme
- The Purchaser is settling within 6 months & holds an eligible loan approval from a participating lender in the Government’s initiative First Home Loan Deposit Scheme guaranteed by the National Housing Finance & Investment Corporation (‘NHFIC’).
- 100% Settlement Funds are approved however Cash for 10% Deposit is not available
- Formal Loan Approval for 100% purchase price is in place & savings held to cover settlement costs. However, purchaser is unable to access funds for 10% deposit to exchange Contracts of Sale.
- Parent Support
- Cash Gift by parents to settle however these funds are not available to pay the deposit the purchaser will not be able to exchange Contracts of Sale.
- Parental Guarantee backed by equity in current property assets is collateral security for First Home Buyer’s loan amount equal to 100- 105% purchase price.
- Cash funds are not accessible for the deposit.
WHO can qualify for a Deposit Bond?
- FIRST HOME LOAN DEPOSIT SCHEME CANDIDATES
With Loan Approval for Terms < 6 Months:
To be eligible purchasers must prove 5% savings, however typically are still required to pay 10% deposit to exchange contracts of sale. In these circumstances for settlement terms up to 6 months, first home buyers can still qualify for a DBA issued QBE Deposit Bond by providing the formal approval of the eligible loan with up to 15% of the eligible property’s value guaranteed by NHFIC.
With Parental Guarantee & NO Loan Approval for Terms > 6 months:
For these applications when the loan approval is not available until 6 months from settlement a First Home Buyer can still apply with a parental guarantee in place.
- APPROVED PURCHASERS for FIRST HOME BUYERS GRANT
The grant cannot be used for the deposit These funds are only available at settlement or waiver of stamp duty concessions. However when DBA assesses a First Home Buyer for a Deposit Bond the value of the FHBG is taken into account as an equity contribution.
- Buyers of House Land Packages or Units Off the Plan with Settlements > 6months:
Deposit Bonds are a particularly cost-effective way to exchange Contracts of Sale with longer settlements supported by Parental Guarantee. For instance buying house/land packages or units in off-the-plan developments.
First Home Buyers’ cash savings can remain intact and continue earning interest while awaiting settlement.
Parent Guarantors are neither required to alter current mortgage arrangements nor pay cash prematurely prior to settlement.
WHY Use an A+ Rated QBE DEPOSIT BOND issued by DBA?
- DBA’s Fast Approval
First Home Buyers can be ‘deposit ready’ within 4 hours to 2 business days subject to application type.
- Flexible Application Processes
- With Finance – formal loan approval in place. Settlement term is <6 months
- Without Finance – no formal loan is required. Settlement terms range from 3-66 months assesses the Applicants’ income servicing capacity and the Parent Guarantors’ equity held in property and other hard assets. Contract terms may vary from 3 – 66 months.
- Government First Home Buyer Subsidy or Guarantee Schemes
These initiatives do not cover the 10% deposit needed to exchange Contracts of Sale.
First Home Buyer government assistance whilst very beneficial only relate to settlement in the form of stamp duty concessions & saving of mortgage insurance cost.
The First Home Buyer still needs to have genuinely saved a minimum 5% purchase price and eligible for a 95% loan or be supported by parental guarantee.
Deposit Bonds can be used for up to 6 month settlement terms for those First Home Buyers who can produce formal approval of their eligibility from a participating Lender approving 95% loan guaranteed by the Government.
- DBA’s Best Price
DBA offers the most competitive pricing being calculated by term and value ranging from 1.15% to 1.3% of the bond value for terms up to 6 months and from 2.3% pa to 3.2% for longer terms.
- First Home Buyers approved for Loan can only access funds for settlement not exchanging contracts