How Deposit Bonds Can Help First Home Buyers + 3 Tips To Get Started Today
Are you a first homebuyer wondering how a deposit bond can help you? Not sure what to do next? Hold the phone – Deposit Assure’s co-founder Etienne Rizzo spoke to Anthony Alabakov at My Mortgage Freedom about how deposit bonds can help first homebuyers purchase property and tips on what happens next.
If you haven’t seen the MMF TV episode, you can watch it here.
For a quick recap, here are Etienne’s top tips on getting started today:
TIP #1: SAVE THE BANK OF MUM & DAD
“Many first homebuyers have little more than the first home owners grant. You might have had that conversation with your mum and dad about a guarantee loan, which is a lot easier to strike. But once you get your loan, the next hurdle is asking your mum and dad to then help you with the deposit. Let’s say you’re buying a property for half a million, you’ve got to say,“ Mum, I also need $50,000”.
They might not have it available, so for a small premium (which you can work out using our fee calculator) we can issue a bond for first homebuyers for that 10%, which means that any cash they’ve saved they can keep. And mum and dad don’t have to fork out.”
TIP #2: HAVE THE CONVERSATION
“If you’ve decided on a deposit bond, the first thing to do is ask your real estate agent if they will accept a QBE-backed deposit bond. There’s no point getting down the track and then they say no. Get some help from your broker if you need it. We’re backed by QBE Insurance Pty Ltd and that gives assurance to many developers and real estate agents that, in the unlikely event of a claim, the bond will be honoured. So, we say tell homebuyers to focus on QBE Insurance in that conversation.
Next, talk to mum and dad. We’ve got fantastic blogs available that explain to mum and dad how it works (like this one), because obviously they are going to have some questions.”
TIP #3: USE OUR CONCIERGE SERVICE
“We’ve got a Concierge Service which we makes the application process extremely simply. We do an interview over the phone to establish if you can get a deposit bond. It takes just five minutes – we ask you some questions about yourself, we ask some questions about mum and dad (if they’re guarantors) and we can also do an interview with mum and dad. At the end of that process, we have an application form for yourselves and your parents as guarantors to sign. Then it’s pretty much issued within a business day.”
Got more questions? Get in touch with our concierge team today!
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