DBA Issued A+ Rated unsecured QBE Deposit Bonds are an ideal solution for property purchasers without Cash readily available for 10% deposit WHO hold:
- Equity in Existing Property
Acceptable proof of ownership via rates notice/s and current mortgage statements.
- Savings in Fixed Term Accounts or Funds under Management Proof by written Statement of savings accounts or funds under management. Deposit Bonds alleviate need to redeem investments prior to maturity date and therefore risk incurring penalties or reducing return on liquid assets.
- Share Portfolios Purchasers simply need to prove ownership of shares in Top 200 public companies listed on ASX or equivalent FX. There is no requirement to sell shares prematurely. This alleviates the risk of reduced dividends or lost investment opportunities.
WHO can USE DEPOSIT BONDS?
- Purchasers Selling to Buy with Need for Simultaneous Settlements
Deposit Bonds are unsecured. This means Purchasers do not need to mortgage current property assets to qualify. DBA independently evaluates asset value supported by proof of ownership and equity in the relevant property assets.Deposit Bonds facilitate simultaneous settlement of 2 properties without the purchasers needing to sell, relocate twice or pay rental between exchanging and settling both contracts of sale.
- Purchasers who have 5% Cash Deposit however Vendor requires 10% Deposit:
DBA issued QBE Deposit Bonds are flexible and can be used in combination with 5% cash deposit when Vendors require full 10% of the purchase price to exchange contracts of sale. Combination deposits often suit purchasers who may only have, or prefer to pay, a 5% deposit in cash however then top up with a 5% deposit bond.
OTHER DEPOSIT OPTIONS?
Bank Guarantees are rarely available for use as 10% Property Deposits.
Few Banks issue Guarantees and rarely permit usage as 10% deposits for residential property purchases. Unlike Deposit Bonds all Bank Guarantees must be secured by an equivalent cash amount or mortgage over real estate with sufficient equity. Access to Bank Guarantees can take weeks often not matching the timeframe for contracts to exchange.
Refinancing or Bridging Finance – Time Consuming & Uneconomic This is the most expensive and time-consuming way to raise a 10% deposit. Additionally, refinance or bridging finance applications can take weeks to gain approval, sign mortgage documentation and access funds which may also jeopardise securing the property of choice within contract terms.
WHY Use an A+ rated QBE Deposit Bond issued by DBA?
Flexible Streamlined Application Processes
Downsizers with no loan needed to settle most commonly Retirees apply on Without Finance (ie no loan approval) & without need to prove income. Subject to settlement term of new property the current property being sold does not have to be exchanged or listed in order to apply for a DBA/QBE Deposit Bond.
Upsizers most commonly are families relocating from unit to house/land packages and as such seeking simultaneous settlement
DBA has been assessing approving and issuing QBE Deposit Bonds since 2006. Purchasers can be ‘deposit ready’ within 1-2 business days by utilising DBA’s user-friendly application and speedy approval process.
Most Cost-Effective Deposit Solution:
Purchasers pay a once-off fee upon approval. Fees for DBA/QBE Deposit Bonds with terms up to 6 months are calculated from 1.15 – 1.3% of value for either online or manual (With Finance) applications. Terms from 7-66 months fees are calculated @ 2.3 – 3.2% pa (Without Finance) applications.
Keep Savings Intact: Maximise ROI
Paying Vendors 10% cash deposit usually means sharing interest on 50/50 basis often at a much lower return than long term managed funds.
Deposit Bonds are Unsecured guarantees:
Purchasers’ retain control of their cash savings, real estate and investment assets between exchange of contracts and settlement. No security documentation is needed which saves time and unnecessary legal fees to exchange contracts for sale.
A+ Rated QBE Deposit Bonds issued by DBA are accepted nationwide!