Can I buy a property with no cash deposit ??
What's a Deposit Bond? Often a client doesn't have enough to put down a 10% (or 5%) cash deposit when buying a property. Most commonly this is when they are buying an investment property, or a home with minimal deposit (say, using a parental guarantee). In these instances we help the client order a deposit bond. By far the biggest provider of these in Australia is Deposit Power and this link to their website gives lots of info and answers FAQ's.
The cost of a bond (up to 6 months settlement) is 1.3% of bond value, so say someone buys for $600,000 and needs a $60,000 deposit (bond), the cost is $780. We get the forms ready prior, and order the bond online as soon as the loan is fully approved. So as soon as the loan is approved, we can (within 5-15 minutes) send an email pdf version of the bond to the clients solicitor to allow the unconditional exchange (ie cool off, or exchange on a 66W).
The paper version of the bond is express mailed and usually arrives next day.
Most conveyancers will use the electronic version to cool off, so it's a very quick process. Lots of info at the link. Auctions and long bonds (off the plan) are a little different, so feel free to call me if any q's. PS: some brokers have a different provider or lodgement system that can take up to 2-3 days, so if you are getting a bond somewhere else, make sure you ask about the fine print.