When Camille and Sarah found a beautiful unit being built in the historic village of Woodend in Victoria, they knew the time had come for a lifestyle change. All they needed now was the deposit.
The couple, both scientists at Parkville, Melbourne, were looking for something more low-maintenance than their current home in Gisborne.
“We came back from a five-week holiday and it took three weeks to get the garden back in shape. That’s when we realised we need a change,” recalls Camille.
The couple found a beautiful one-level apartment being built in the idyllic village of Woodend, less than hour from Melbourne. In a complex with only five units, the apartment is a small build – just 153m2 with a balcony of 22m2. But was everything the couple didn’t realise they were looking for.
“We only bought our current property a year and a half ago and weren’t planning on moving, but we fell in love with this property. So we made a quick decision to buy it off the plan.”
But without having sold their current property, Camille and Sarah didn’t have the cash to put down the deposit.
“We’re normally big planners and we always try to get the money in the bank before buying. But we weren’t planning on buying something so quickly. Our equity was locked up in our Gisborne home, which we planned to sell. But because we hadn’t sold yet, we didn’t have the cash ready for a deposit,” explains Sarah.
Some homebuyers use a family guarantor for a deposit, but this wasn’t an option as both their families live overseas. The next thing they considered was a bank guarantee.
“So we went to a major bank, but they wanted to give us a bridging loan, which would have been too expensive and take too long,” she explains. “So our broker, Cameron McDonald from Mortgage Choice recommended a deposit bond.”
“Our broker tried to get a deposit bond from another company, however because we only recently purchased our home, we didn’t have enough equity and our application was rejected. That’s when he referred us to Deposit Assure.”
As soon as Camille and Sarah contacted Deposit Assure, it was smooth sailing.
“We told them what we needed, and they explained how a deposit bond works and what we would need to provide. The great news was Deposit Assure could issue a deposit bond, despite the low amount of equity we had.”
Deposit Assure provides deposit bonds backed by the A+ credit rated insurer, QBE Insurance (Australia) Ltd. As required for off-the-plan properties, the deposit bond was issued up to the Sunset Clause date.
“All told, it took just three days from when we first called to when we received the deposit bond. It was such a relief! We knew this apartment was a one-time opportunity and a deposit bond worked perfectly for our situation.”
With their new home due to be finished by the end of the year, the couple are looking forward to living the country life.
“Our commute won’t really change much – we’ll be just 45 minutes from Melbourne. And the apartment will be right in the middle of town, close to everything. We can’t wait!”
Interested in getting a deposit bond for your off-the-plan property? Don’t have the cash handy for your property deposit?
Our deposit bond concierge team is on hand to answer your questions and guide you through the entire process, from start to finish.
Are you buying off the plan? Read our how-to guide on getting a deposit bond for your off the plan purchase.
OTHER REAL-LIFE STORIES
When retirees Margaret and Lawrence decided to downsize, they were reluctant to draw on their superannuation to put down the deposit. Deposit Assure gave them a solution.
What happens when you want to take advantage of a great property investment opportunity but your cash is tied up elsewhere? Melbourne-based property investor Kim Castles found the answer in a deposit bond.
It’s a downsizer’s dream to be able to purchase a smaller home before selling the current one. The problem is, most of us will still need to find a deposit to make the dream come true, as Sydney-sider Angela Verad discovered.
When Anne Moss found her dream home on the south coast of New South Wales, she knew it was a matter of moving fast or missing out. Read how a deposit bond helped them to secure their home.
New South Wales couple David and Alison thought they had it all covered when they decided to buy a beautiful off-the-plan unit in Potts Point. But then everything changed.
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.