DEPOSIT BONDS

What is a Deposit Bond and How It Can Work For You?

A deposit bond is a guarantee to the Vendor equal to the amount of the deposit required. It effectively takes the place of a cash deposit between the time of exchange and settlement of the property.

It is quick, cost-effective and a convenient alternative to tying up your assets when needing to raise a deposit.

You can use a Deposit Bond to secure a property which may not settle for up to four years. This means you can continue to earn interest on your investments, avoid paying the high cost of a loan or securing a bank guarantee until it is time to settle the property.

In order to be eligible for a Deposit Bond, through CYBER MORTGAGE , you must be able to prove that you have the ability to settle the property you wish to purchase.

Benefits for Purchasers:

• Deposit Bonds are Unsecured (ie., No mortgages or charges are taken over property assets).
• The Deposit Bond cost ranges between 0.3 and 1.255 of the purchase price and is calculated with respect to the term and value of the Deposit Bond required. This amount is paid once at the time of application. CYBER MORTGAGE does not charge a fee if the Applicant does not qualify for a Deposit Bond.
• Deposit Bonds generally have proved to be more cost effective than using your own savings, bank guarantees or loan monies.
• No loan approval is required by CYBER MORTGAGE to issue Deposit Bonds with terms of 6 months or greater.
• CYBER MORTGAGE Turnaround Time - from receipt of a satisfactory completed application and supporting documentation to approve and issue is 24 to 48 hours.
• Provides you with an opportunity to purchase the property of your choice whilst keeping assets untouched until needed at time of settlement.


Benefits for Vendors & Financiers:

• Each applicant is assessed in accordance with current Retail Bank and Loan Mortgage Insurance policy which constitute the underwriting criteria for this product.
• The mandatory requirement for CYBER MORTGAGE to issue is that each Applicant must prove they are bankable for the full purchase price plus costs.
• Broadens the purchaser market as often purchasers may only have sufficient liquid assets for a 5% deposit, whilst a Deposit Bond representing a 10% deposit may be provided to approved applicants.

Benefits for Property Consultants:

• GE Deposit Guarantee Applicants are fully qualified by CYBER MORTGAGE as to their financial ability to complete the entire purchase.
• Expedites exchange of contracts for sale which in turn accesses commission payments faster.

Benefits for Solicitors:

• Expedites and streamlines the exchange process.
• Eliminates delays in waiting for purchaser’s funds or bank guarantees, to become available.
• CYBER MORTGAGE qualifies the purchaser’s financial ability to settle the property.