Yes. If you do not have funds readily available then a deposit bond is one alternative. A deposit bond is a substitute for a cash deposit that guarantees the purchaser will pay the full purchase amount by the settlement date. Institutions providing deposit bonds act as a guarantor that payment will be made. They are generally used when cash isn’t readily available for a deposit. You can apply for a deposit bond once you have the formal approval from the lender, or if you can show that you have access to funds from another source such as shares.
When applying for a deposit bond, an independent assessment will be made by your deposit bond provider. Bonds can be issued for a period of up to 48 months, however the shorter the period the bond is required, the lower the cost to the borrower. A bond for a 10% deposit on a $500,000 property will typically cost around $600.
If you need help with the arrangement for a deposit bond, talk to one of your local Mortgage Choice brokers. They will be more than happy to assess your current financial situation and will make appropriate recommendations.