Who Issues Residential Deposit Bonds with terms from 3 to 66 Months?
Deposit Bond Australia (‘DBA’) is the longest standing Issuing Agent of short and long term deposit bonds in Australia having been operating with the same continual ownership since 1998. As such DBA’s directors have an unrivalled depth of experience in the development and management of 4 public companies’ residential deposit bond programmes.
Appointed in 2006 by current Underwriter QBE Insurance (Australia) Limited, DBA is QBE’s longest standing Agent authorised to assess, approve & issue its A+ rated Deposit Bonds
What is a Deposit Bond?
A deposit bond is a financial guarantee accepted as a legal substitute for cash when Purchasers must pay a deposit to unconditionally commit to the terms of a Contract of Sale. The deposit bond value can be for any amount up to 10% of the agreed purchase price. At settlement, the Purchaser must then pay 100% contract price including the Deposit Bond amount.
Who can use a DBA issued QBE Deposit Bond?
Purchasers of Australian residential property whether seeking to upgrade, downsize, owner-occupy or invest ranging from First Home Buyers to Retirees to Developers.
To qualify each Applicant must prove their financial capacity to settle 100% of purchase price within the terms of the relevant Contract of Sale.
Due to the combination of QBE’s premier Standard & Poors’ A+ (Stable) rating and DBA’s proven 22 year track record accurately assessing Purchasers’ capacity to settle, QBE Deposit Bonds issued by DBA are accepted by Vendors and Lenders nationwide for all terms from 3 to 66 months. This means purchasers of existing or off plan properties may apply for a QBE Deposit Bond issued by DBA.
DBA’s streamlined assessment, approval and issuing service means purchasers can be deposit ready from within 1- 48 hours of application lodgement subject to type & complexity.
Deposit Bonds are unsecured which means QBE neither mortgage nor charge any of the Purchasers’ assets in order to issue a deposit guarantee. This means Purchasers are able to keep their savings and investments intact generating revenue until needed for settlement.
DBA/QBE Deposit Bond Applications can be lodged With Finance approved ready for settlement. Alternatively, if it is too early to apply for a loan or borrowed funds will not be required to settle the Purchaser may apply on a Without Finance basis. QBE Deposit Bond credit policy is the broadest available and so accommodates the widest demographic of individuals’ circumstances.
DBA/QBE Residential Deposit Bond fees are calculated by term, value & type of application. The once payable fee ranges from 1.15% of deposit bond value for Applications approved with finance for terms up to 6 months and up to 3.2% pa for terms up to 66 months based on full credit assessment. For an immediate quote head to DBA’s fee calculator
Download relevant DBA application form here
Alternatively to speak directly with DBA’s friendly team FREECALL 1800 266 388.