When New South Wales couple Anna and Phillip Towers realised they had to put down a 10% deposit for an off the plan property, they thought the dream was over. Then, they found the solution.
When Anna and Phillip wanted to downsize from their large family home, they found a house and land package in an over 65’s community that ticked all their boxes. And even though they weren’t yet retired or over 65, the couple knew this was the right move for them.
“We really loved the community – it’s just down the road from where we are now in Cranebrook and has everything we’ll need as we gradually move into retirement,” said Anna. “We’d never bought off the plan before so the whole process was new to us”
One thing that came as a surprise to the couple was that they needed to put down a 10% cash deposit to secure the property – something they couldn’t do without selling their current home first.
“We didn’t have $58,000 in the bank – unless you’re millionaire, who does?” Anna recalls. “We thought that was it, the sale wouldn’t happen. It was incredibly stressful.”
Their real estate agent recommended a deposit bond, which is a substitute for the cash deposit required between signing the contract of sale and settlement. Just like a cash deposit, a deposit bond is used to guarantee the commitment of a buyer to the contract of sale and can be used for off the plan purchases.
“We knew a personal loan would be expensive, with the interest and all. And we haven’t gone to the bank for a loan since we bought our first house. It wasn’t something I wanted to go through again in a hurry!” says Anna. “Our estate agent told us people use deposit bonds all the time and others in the complex had used them instead of cash. This gave us the confidence to look into it.”
The couple hadn’t used a deposit bond before, and weren’t exactly sure how they worked. So, Anna did some research and quickly realised this could be the solution they were looking for.
“It was all very easy,” she recalls. “I went on the Deposit Assure website and started chatting to someone online to find out how it works. Then I got a call back in less than 24 hours; it happened very quickly.”
Deposit Assure’s bonds are underwritten by QBE Insurance, one of the most respected and recognised insurance companies in Australia. The process is simple and, whether this is your first or fifth deposit bond, Deposit Assure is on hand to help every step of the way.
“When Etienne called and said he’d give us the deposit bond for the vendors, it was like a huge weight had been lifted off my shoulders. I could have heard him say that over and over again!” laughs Anna.
“The customer service was excellent – Deposit Assure really wanted us to get the bond so did everything possible to help us. They made sure all the i’s were dotted and the T’s were crossed. We’re really appreciative of all the help they gave us and couldn’t recommend them more highly.”
Are you buying off the plan without access to a cash deposit?
Get in touch with our deposit bond concierge team. We’ll assess your situation and, if a deposit bond is what you need, we will take care of your application for you. Our concierge officers will guide you through the entire process from start to finish. Easy!
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