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Deposit Bonds
When people buy a home one of the most important steps is to enter into a contract. To do so it may be necessary to pay up to 10% of the purchase price as a deposit at the time contracts are signed.
Sometimes people have the means to pay the 10% deposit but don't have it immediately available at the time they sign the contract.
- What if their current home has been sold but hasn't settled yet?
- What if they are borrowing more than 90% of the purchase price?
- If they don't want to pay a penalty for breaking a fixed term investment?
A Greater Building Society Deposit Power Bond comes to the rescue!
The Greater Building Society Deposit Power Bond is a convenient way of purchasing without the worries of arranging a cash deposit. It is a guarantee provided by Vero Insurance Limited to the vendor for all or part of the deposit required, until settlement. The purchaser will then pay the total purchase price (including the deposit) at the time of settlement, as agreed in the contract of sale.
This means that the purchaser does not have to pay the deposit when the contracts are signed. (However, the purchaser must always have the means to pay the deposit at the time of settlement - a Deposit Bond is not an alternative to not having sufficient funds).
Benefits of the Greater Building Society Deposit Power Bond
- It is inexpensive and quick - usually within 24 hours
- There is no more need to arrange expensive short term bridging finance
Who does it suit?
- People who have contracted to sell their existing property but wish to secure a new home before theirs settles
- Investors borrowing the full amount of the purchase price
- Buyers borrowing with a deposit of less than 10%
What does it cost?
The Bond Fee is calculated on a sliding scale depending on the amount you require. For example:
- A $10,000 Deposit Bond costs $120.00
- A $15,000 Deposit Bond costs $180.00
- A $20,000 Deposit Bond costs $240.00
If you have a need for a Greater Deposit Power Bond, contact your local Greater Branch.