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Deposit Assure has launched a 'fee free' deposit bond following feedback from the broking industry.
The deposit bond provider has launched a new product to market following broker feedback.
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The new FLEXI Deposit Bond enables a home buyers to secure a pre-approved deposit bond of up to 10 per cent of their maximum intended purchase price without paying an upfront cost.
Pre-approvals are based on the evidence of funds to complete, such as a loan approval or pending sale of an existing property.
The bond - which is valid for six months - can also be used to bid at multiple auctions until the property is sold.
According to Deposit Assure, the buyer will not have to pay the deposit bond fee until the buyer has found a property, or is successful in securing a property through an auction.
At that point, the deposit bond is updated to include the details of the purchase such as vendor details, property address and the price of the property.
A flat fee is applied and then charged to the buyer before releasing the updated deposit bond.
The chief executive of Deposit Assure, Etienne Rizzo, commented: “Deposit Assure has always actively looked for ways to pivot and grow demand for residential surety bonds – including being the first deposit bond provider, to release a digital bond in 2020.
“The new product offering, is a win:win for brokers and clients alike as it provides the benefit of complete flexibility, with a ‘no win - no fee’ model.”
Mr Rizzo suggested that the product would “immediately appeal to buyers” who are yet to find a property to purchase.
“Equally, we anticipate the new model to resonate with brokers as it removes the need to go back and forth with customers to amend the deposit certificate with changing property purchase details,” Mr Rizzo continued.
“It also eliminates the pain point of needing to process refunds if the borrower is unsuccessful in securing the property, and the associated clawbacks that impact brokers.”
Mr Rizzo stated the goal of the new deposit bond is to “help expedite property purchases” and simplify the auction process.
The product launch comes as the company moves to further embed itself into the broker channel. It recently appointed Grant Bailey to the new role of head of partnerships, which he commenced on 23 May 2022.
Mr Bailey’s responsibilities in his role include company’s sales, marketing, and relationship management with brokers, aggregators and industry associations, while also promoting the company’s deposit bonds for Australian property purchasers nationwide.
[RELATED: Grant Baily joins Deposit Assure]
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