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The aggregator’s brokers can now help borrowers get onto the property ladder faster by offering them deposit bonds as part of a new partnership.
Purple Circle Financial Services has announced a strategic partnership with deposit bond provider Deposit Assure to help brokers offer more support for borrowers in the challenging real estate market.
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Purple Circle members now have access to Deposit Assure’s FLEXI deposit bond.
The bond, which has instant issuance, enables potential home buyers to obtain pre-approved deposit bonds of up to 10 per cent of their maximum intended purchase price at no upfront cost.
They are underwritten by QBE Insurance (Australia) Limited and valid for six months.
The product aims to help borrowers with quick decisions and secure their properties on the spot, reducing waiting periods and enabling buyers to act when they need to – including weekends and outside of business hours.
The director of Purple Circle, Frank Paratore, welcomed the new partnership, stating: “This partnership underscores our commitment to supporting brokers by providing them with user-friendly tools and resources.
“In the current rising interest rate market, with limited housing stock nationwide, it has become imperative to provide our members, with essential tools that facilitate seamless transactions for both purchasers and vendors. A deposit bond is such a tool.”
Etienne Rizzo, the chief executive of Deposit Assure, added the group was “thrilled to partner with Purple Circle”, stating: “This collaboration allows Purple Circle’s members to navigate the challenges of the current real estate market with confidence by making the process simpler and more efficient.
“We empower them to focus on what they do best – helping their clients achieve their property goals.”
Deposit Assure released the instant issuance product earlier this year, in a bid to keep pace with the hot property market.
Previously, the company could only issue bonds within business hours – meaning that home buyers attending auctions on the weekend would have to wait until Monday for the vendor acceptance to be updated (thus securing the property).
However, with auction clearance rates unseasonably high as more home buyers look to secure property, Deposit Assure wanted to reduce the time bond customers need to wait before securing their property.
Speaking at the time, Mr Rizzo said that it had been rolled out in response to the current market demand, with more buyers active in the market despite the interest rate rises, yet a shortage of property supply. The high competition was spurring urgency among buyers, who wanted to move fast to secure their dream home so they don’t miss out, he said.
Deposit Assure saw a 333 per cent increase in FLEXI Deposit Bonds issued in the June quarter, when compared to the same quarter last year.
[Related: Deposit Assure releases instant issuance]
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