HOME LOANS & DEPOSIT BONDS
CPM Realty deals with a range of mortgage brokers to offer different finance solutions for Property Buyers.
When buying off the plan properties, you don't need finance until settlement.
Approximately 3 months from the completion of the property, you should start speaking to a mortgage broker and talk about organising a mortgage in preparation for settlement. Sometimes this process can take a few days to a few months.
By starting this early, it gives you plenty of time to organise yourself.
We are here to work closely with you and your financial planner to ensure you get the best deal that suits you.
We are property investors ourselves, so we have a first-hand understanding of the type of information, support and advice you need.
Please call us on 9247 1299 if you have any further questions or would like recommendations.
If you are purchasing a residential property, and you don’t have your 10% deposit readily available, then a deposit bond may be your answer.
A deposit bond is a guarantee to the vendor, by an insurance company, that they will receive their 10% deposit, even if the purchaser defaults on the contract of sale. You, the purchaser, are able to provide this guarantee to the vendor by paying a small premium to the insurance company.
Some examples of instances where a deposit bond can be used are:
Where you are selling one property and purchasing another and you don’t have a cash deposit
You need a 10% deposit, but you only have a 5% deposit and you have been approved for a home loan of 95% of the purchase price
You are borrowing 100% of the purchase price of a property using equity in another property and you don’t have the cash available to use as a deposit
You have a deposit available but it is tied up in shares or managed funds that you don’t wish to liquidate immediately
Upon settlement of the purchase, you, the purchaser, are still required to pay the full purchase price of the property, including the 10% deposit. The purpose of a deposit bond is not to pay the deposit but to guarantee to the vendor that it will be paid.
If a purchaser reneges on the contract of sale and is still required to pay the deposit, the vendor can claim the money from the insurance company who issued the deposit bond. The insurance company will then recover the money from the purchaser.
If you want more information on deposit bonds or would like to know if you qualify, please contact us on 02 9247 1299.