deposit bonds could be your unfair advantage FOR YOUR FIRST OR NEXT PROPERTY PURCHASE. WE MAKE IT A PIECE OF CAKE!
- Get into Your Home Sooner
- Keep Your Cash Working
- Fast and Simple
- Affordable Alternative
- Tailored for You
What is a Deposit Bond?
A deposit bond is a financial guarantee issued as a digital certificate, serving as an alternative to a cash deposit when purchasing real estate. It is not a loan.
To obtain a deposit bond, an eligibility assessment is conducted to verify your financial ability to complete the purchase, but it does not utilise your cash or assets. When a seller receives a deposit bond, it represents a commitment that the deposit amount will be paid upon settlement.
With a deposit bond from BrokerCo, you can secure a property quickly and effortlessly, allowing you additional time to arrange the cash deposit and settle the full property value at settlement.
Clarifying DEPOSIT BONDS misconceptions: Defining its true meaning
A step-by-step guide on how deposit bond works
It’s a familiar situation: you’ve discovered the perfect property, but you either don’t have the complete cash deposit or prefer not to lock up your funds while selling your current home. No need to worry, as using a deposit bond allows you to get ready for your purchase, even if you don’t have the full deposit on hand.
1. Application
Simply submit your Deposit Bond application to BrokerCo, including all information regarding your property purchase and your current financial situation.
Our Brokers will then access the application to ensure everything meets requirements, and we can then push your application into the approval phase.
2. Approval
You can receive quick approval, and your digital Deposit Bond can be sent to your device within just a few minutes.
Once you have received your Deposit Bond, you can now continue with your property hunting. It’s time to go shopping for your first home, next home, or investment property.
3. Acquisition
When signing the contract of sale, provide the seller or real estate agent with the digital Deposit Bond as an alternative to a cash deposit.
At the time of settlement, pay the total purchase price, which includes the deposit amount. The Deposit Bond will expire once the settlement process is finalised.
How Secure Are Deposit Bonds?
BrokerCo bonds hold a prestigious “AA-” (Very Strong) rating from Standard & Poor’s—the same rating as Australia’s Big 4 banks. With over 8 years of experience issuing Deposit Bonds, we are a trusted choice for real estate agents, solicitors, conveyancers, and vendors.
Australia’s Highest-Rated Deposit Bonds
Underwritten by HDI Global Specialty SE, our deposit bonds carry an “AA-” (Very Strong) credit rating from Standard & Poor’s, ensuring the strength and security you can rely on.
What are the uses of a Deposit Bond?
We provide short-term bonds that offer you the assurance and ease needed for auctions or private treaty transactions, as well as long-term bonds for purchasing off-the-plan properties or home and land packages. This allows you to keep your money in your bank or elsewhere, earning interest, instead of tying it up in a trust.
Short Term Bonds
For use up to 6 months. Can be used to avail the following:
Long Term Bonds
From 7 to 66 months (5.5 years). Can be used to avail the following:
Advantages of Deposit Bonds
- Get into Your Home Sooner:
With a Deposit Bond, you can secure your dream property without needing the full cash deposit upfront—perfect for first home buyers or anyone short on liquid funds! - Keep Your Cash Working:
Leave your savings earning interest or tied up in investments until settlement, giving you more financial flexibility. - Fast and Simple:
We can arrange your Deposit Bond quickly—often within hours—so you don’t miss out on that must-have home. - Affordable Alternative:
For a small one-off fee (starting at around 1.2% of the deposit), you get peace of mind and a guaranteed commitment to the seller, no bridging loans needed. - Tailored for You:
Whether it’s a short-term purchase or an off-the-plan build, our deposit bonds suit a range of settlement timelines—up to 66 months!
Qualify for A deposit Bond
Securing approval for a Deposit Bond is more straightforward than you might anticipate. BrokerCo provides adaptable solutions tailored to your needs, whether you’re seeking a short-term bond for an imminent settlement or a long-term option for an off-the-plan acquisition.
Short Term Bonds
Term can be up to 6 mos. Here are 2 ways to qualify:
1. Fast Track Option
To qualify for this option, simply provide evidence of funds available to complete the purchase, such as:
- A loan approval letter
- A savings statement
- Proof of a financial gift
2. Home Equity Assessment
Eligibility for this option requires ownership of existing property with sufficient equity:
- For bonds up to $150,000:
- Equity equal to 1 times the deposit amount
- For bonds over $150,000:
- Equity equal to 2 times the deposit amount
These options provide flexible pathways to secure a deposit bond based on your financial situation.
Long Term Bonds
To be eligible for a long-term Deposit Bond under the Home Equity Assessment option, you need to demonstrate equity in your existing property as follows:
- For bonds with durations between 7 and 24 months: Equity amounting to three times the 10% deposit.
- For bonds spanning 25 to 36 months: Equity totaling four times the 10% deposit.
- For bonds extending from 37 to 66 months: Equity equaling five times the 10% deposit.
These requirements ensure that your property’s equity sufficiently supports the Deposit Bond over its term.
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info@brokerco.com.au
Maroochydore Homemaker Centre, Level 1/11/55 Maroochy Blvd, Maroochydore QLD 4558, Australia
+61 7 5370 8333