Why Home Buyers Should Use Deposit Bonds
Like the ones we offer here at Deposit Rocket, Deposit Bonds first became popularized in Australia before coming to North America.
Deposit Bonds are the next evolution in the home buying process, making the deposit side of the transaction smoother for everybody.
Here’s a quick rundown of why home buyers should move to Deposit Bonds instead of cash deposits when buying a home:
No Need to Free Up Cash
For many homebuyers, the cash needed for a deposit can be as high as $100,000 or more, depending on the area. Not everyone has that money available to them while they look for a home as it’s most likely tied up in other investments or even in the equity of your current house.
That means you need to pull out of an investment or secure more expensive bridge loan financing. Deposit Bonds allow you to keep your cash where it is until closing.
More Competitive Offers
When offers have similar terms and conditions, the size of the deposit can often be the deciding factor. The best part of a Deposit Rocket Deposit Bond is that you can instantly increase the size of your deposit, right in the seller's driveway or at their kitchen table.
This can give you a massive leg up when in competition against other buyers.
When you negotiate with a home seller and use cash instead of a Deposit Bond, the sale is conditional on financing, home inspection, or several other potential conditions, and you have to provide your cash deposit at that time.
If you decide not to go forward with the purchase due to an unforeseen reason, it can take a few days to get your deposit money back. What if another home you want comes up during that time?
You don’t want to be stuck without your deposit!
With a deposit bond being used in your offers, you can make as many offers as you want without the worry of missing out on another opportunity.