A+ Rated and Unsecured QBE Deposit Bonds issued by DBA are the IDEAL way for Purchasers needing to use Equity in existing real estate assets to raise up to 10% Deposit when buying a new property.
DBA can HELP Purchasers who have:
- EQUITY in PROPERTY rather than CASH:
Deposit Bonds are unsecured financial guarantees. This means Purchasers’ assets are NOT mortgaged to access a QBE Deposit Bond. DBA simply evaluates the amount of equity held to check there is sufficient value to settle on the new property.
- CASH INVESTMENTS: Fixed Term Deposits which if redeemed prior to rollover date can incur major penalties.
- SELF MANAGED SUPER FUNDS:
May not be accessible for the purchase of a new residence. Or The fund must remain intact to maximise retirement income.
- SHARE PORTFOLIOS: Selling prematurely can impact dividends or eligibility for taking up options.
- NO NEED for a LOAN to SETTLE: Using a Deposit Bond is ideal when planning to complete both sale and purchase simultaneously WITHOUT needing to borrow funds to settle. Deposit Bonds are an even easier solution in this situation as proof of income is not required.
WHY USE an A+ Rated QBE Deposit Bond issued by DBA?
- PURCHASER HAS NO NEED TO SELL PREMATURELY:
Retirees can secure their new Retirement Lifestyle immediately and sell their existing home in a timely manner ready for settlement
- NO PROOF of INCOME needed:
Retirees able to settle without needing a loan can apply for a DBA/QBE Deposit Bond by simply providing evidence of equity held in real estate property via Rates Notice and current Mortgage Statement (as relevant)
- COST EFFECTIVE:
Purchaser pays a once-off fee upon approval. Fees for DBA issued QBE Deposit Bonds are calculated by term and value. Deposit Bonds with terms over 6 months are calculated @ 2.3 – 3.2% pa – very competitive rate for an unsecured guarantee!
- SIMULTANEOUS SETTLEMENTS MADE EASY:
Retirees using a Deposit Bond to pay the 10% deposit when buying off plan avoid the need to relocate twice and pay rent whilst awaiting occupation of new home. Simultaneous settlement of current & new homes with extended contract terms are made easy with deposit bonds.
- UNSECURED DEPOSIT GUARANTEE:
This means Purchasers retain full control of their assets and flexibility with cash management funds in the interim between exchange and settlement of a contract of sale.
- DBA’s 24-48 HOUR TURNAROUND DBA’s simple fast application process means Retirees can within 1-2 business days be deposit ready and commit to purchasing the property of their choice in a convenient manner.
- NO NEED TO SHARE INTEREST ON 10% CASH DEPOSITS:
Paying 10% cash deposit usually means sharing interest on 50/50 basis with the Vendor often at a much lower return than long term managed funds. This means reduced income for Retiree between exchanging and settling a contract which is an added cost to purchase.
OTHER Deposit Options?
BANK GUARANTEES are not readily available:
Few Banks issue guarantees and usually for Business purposes only. Another difference to Deposit Bonds is that Bank Guarantees must be secured by either fixed-term cash savings or equity in property. Often unsuitable for Retirees to re-mortgage current assets just to pay 10% deposit for new home.
BRIDGING FINANCE: Expensive & Inconvenient
Loan servicing policies can be difficult to meet for Retirees with limited income particularly in low-interest market. Often unnecessary for Purchasers who plan to settle without need for a loan by selling current property.