DEPOSIT BONDS with MELBOURNE MORTGAGE FINANCE
What is a Deposit Bond? In Australia when a person or entity enters into a contract to purchase residential property, it is common practice for the purchaser to lodge a cash deposit of up to 10% of...
View ArticleWhy are Deposit Bonds so popular?
A Deposit Bond can be a quick and efficient way of arranging the deposit for the purchase of a residential property. Arranging a cash deposit may take time, especially if the purchaser has not sold...
View ArticleWho can use a Deposit Bond?
The product is suitable for virtually anyone contemplating the purchase of a residential property including: Future home buyers Home owners upgrading to a new property Investors wishing to purchase...
View ArticleDoes a Deposit Bond replace the deposit?
NO. A deposit bond is a guarantee that the deposit will be paid at a future date. Deposit bonds are underwritten by an insurer that guarantees the vendor that the deposit will be paid in full at...
View ArticleWill Vendors accept Deposit Bonds?
Vendors should accept a Deposit Bond in lieu of a cash deposit. However, most Standard Contracts for Sale require a cash deposit to be paid. Therefore, before you agree to purchase a property check...
View ArticleHow long can a Deposit Bond be arranged for?
Deposit bonds are split into two types: Short term bonds for three and six month periods; these are ideal for purchasers buying at auction. Long term bonds which are generally issued for periods of...
View ArticleWhen does the Deposit Bond terminate?
The Deposit Bond expires on the earliest of: the contract for Sale being completed; the Expiry Date; the Contract for Sale being terminated or rescinded and the purchaser being entitled to a refund of...
View ArticleWhat information is required for an application?
This varies depending on the bond term. However, typically a Deposit Bond can be arranged quite simply by submitting a simple application form and supporting documents including copy of lender’s...
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