A residential property purchase generally involves a payment
of deposit (usually 10% of the contract price) to the
vendor. If you don't have cash lying around, you may be able
to use a deposit bond.
A deposit bond is issued by an insurance company and forms a
guarantee to the vendor that the deposit will be paid at
settlement. The cost of a deposit bond is approximately one
percent of the value of the deposit. For example, you might
be planning on buying a house for $300,000. A 10 percent
deposit on this property would be $30,000, so the deposit
bond would cost $300.
We can assist you in obtaining a deposit bond if you require
one at the time of purchase of the property.
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