A deposit bond can be used to:

• take to an Auction
• exchange a negotiated contract
• secure an off-the-plan purchase

A deposit bond is essentially a form of insurance. For an initial premium paid to the insurer, the purchaser receives a guarantee that can be offered to the property vendor in lieu of a cash deposit. Whilst deposit bonds are widely accepted, always check with the selling agent / vendor prior to an auction or attending exchange.

The bond acts as a substitute for a cash deposit during the period between the signing of a contract (exchange) and the settlement of the purchase. At settlement, the purchaser is required to pay the full purchase price to the vendor. The use of a deposit bond does not remove the obligation o the purchaser to pay the full deposit upon settlement.

The shortest term bonds are 3 to 6 months and cover the usual 42 days/ 6 week settlement period on most contracts. Longer bond contracts up to 48 months are available to cover off-the-plan purchases or extended settlements.

Holistic Home Loans can quickly obtain quotations from various bond issuers and arrange a bond prior to exchange. Please contact Holistic Home Loans for more information.