1. How do deposit bonds work?
It’s easy! You may be ready to buy your property or already found the one you want. However, you may not have ready access to the full deposit you are required to pay upon signing of your contract of sale, the property may be under construction with a longer than normal settlement term or your funds may be tied up as equity in other assets or longer term investments such as shares. Whether you have immediate access to your deposit or not there are several reasons why you may not be able to, or want to, use your own funds to pay your deposit. Quite simply a deposit bond is a form of a guarantee accepted by Vendors in lieu of a cash deposit. It defers the need to use your cash up front. At settlement you will be required to pay the full purchase price and any associated costs. For more information please refer to our Information Brochures under Downloads.
2. Who is Deposit Bond Australia?
Deposit Bond Australia Pty Ltd are authorised agents of QBE Insurance (Australia) Limited. QBE’s founding company was established in 1886 and has grown into an international insurance group operating from over 200 offices in 30 countries worldwide. Whether you’re buying a property to live in or you’re an investor a Deposit Bond is the smart way to secure your purchase.
3. How much does it cost?
Deposit Bonds are a cost effective alternative to other forms of short term or bridging style loans. You pay an up front one off fee when the bond is issued and there are no ongoing fees or interest charges. To find out what your deposit bond will cost please go to our Fee Calculator for an immediate quote.
4. Do I need to provide security for a deposit bond?
Deposit bonds are unsecured, which means assets, savings or lines of credit can be kept intact.
5. Do I need to already own Australian property in order to get a deposit bond?
In most cases yes. If you do not own property we will accept spousal guarantees where the property asset is in the spouses name or in the case of First Home Owners we will accept parental guarantees where the parents own property. Property ownership is not necessary where you have an unconditional loan approval from an acceptable lending institution, the term of the bond is six months or less and have proof of funds to complete the property purchase.
6. Can I get a deposit bond if I’m from overseas?
You are required to be an Australian Citizen or hold permanent Australian residency status in order to be eligible.
7. How long does it take to arrange a bond?
Once we have received your fully completed DBA Deposit Bond application and supporting information deposit bonds are generally assessed and issued within 4-48 hours, depending on the complexity of the application.
8. What happens if I don’t settle on the property?
Should a Purchasers’ financial situation alter and as a result can no longer settle, the Vendor will become entitled to receive the deposit monies noted in the contact of sale. By the Vendor making a claim against the deposit bond it is “cashed in” via QBE making the appropriate payment to the Vendor, or stakeholder nominated in the contract of sale, within the timeframe specified on the bond.
The Purchaser is then required to reimburse QBE. If the Purchaser fails to do so the Underwriter has the right to take legal action against the Purchaser for full recovery of the deposit bond value.
9. Target Market Determination
QBE’s Target Market Determination for the Deposit Bond product issued by Deposit Bond Australia Pty Ltd is available in the Information Brochures section under Downloads
10. What if I have a Complaint?
Deposit Bond Australia believes that it is essential to hear and respond appropriately to any complaints or disputes raised by our customers. Our Complaints Policy is available: DBA – Complaints Policy (QBE Deposit Bonds) and informs you how to make a complaint and the process involved in dealing with the complaint.
11. What if I have more questions?
Our friendly staff are available during normal business hours (EST) to talk to you about your needs. If you have any questions please contact us on our Freecall number 1800 266388.