What is a Deposit Bond?
A Deposit Bond acts as an alternative to the 10% cash deposit required on exchange of Contracts for a property purchase. The Deposit Bond is in the form of a guarantee that acts as a substitute for a cash deposit between signing a Contract and settling your property. This allows you to pay the full amount of the purchase price on settlement. Deposit Bonds are a low cost and convenient alternative to exchanging on the purchase of a property and over 28% of all NSW residential properties are exchanged with the use of a Deposit Bond.
WHY USE YOUR OWN 10% CASH DEPOSIT TO PURCHASE A PROPERTY WHEN YOU CAN USE A DEPOSIT BOND!! !