If you are thinking of buying a home at AUCTION!

It is important to remember that if you are the successful bidder then you will exchange contracts and need to pay your deposit immediately after the auction has concluded. If you are the successful bidder you are in effect locked into going ahead with the purchase. Consequently, you need to make sure that you can afford your bid and need to have your deposit ready once that hammer falls.

So before you bid at an auction it is highly recommended that you get a formal, written pre approval for your home loan. That way you will know exactly how high you can bid at the auction AND you can rest easy after the hammer falls in the knowledge that your loan is pre approved.
But what if I am not the successful bidder? That's OK! A pre approval will be subject to the actual property and valuation……so you can take it with you to other auctions and houses that are listed for sale by private treaty. In fact, armed with a pre approval you greatly increase your negotiation power for any homes that are for sale!

OK I have a pre approved home loan BUT what are my Deposit Options?

Whether it's your first home, time to upgrade or to purchase an investment property, a Deposit Bond or Deposit Saver gives you financial flexibility and security. Read on to find out how a Deposit Bond can work for you.
Prior to an auction it is important to have your deposit ready in the hope of successfully purchasing a property. A Deposit Bond removes the inconvenience of rearranging finances in time for an auction, ensuring you don't miss the opportunity of securing your new home. A Deposit Bond can be taken to numerous auctions as the property and vendor's details are left blank. Once successful at auction, the purchaser is authorised to complete these details.

You are planning to purchase a new home, however your deposit is tied up in investments. A Deposit Bond is an attractive option as it allows you to delay payment of your cash deposit until settlement, alleviating the need to immediately liquidate your funds and enabling any investments to continue earning interest until settlement.

You have sold your home and while awaiting settlement have found your next purchase. A Deposit Bond allows you to secure your new property without having to wait for funds from the sale of your existing property.

You are planning to purchase a new home, however your deposit is part of your approved loan. As lenders will not release loan proceeds until settlement, a Deposit Bond is an attractive option as it allows you to delay payment of your cash deposit until settlement when full loan proceeds will be released. This may be a cheaper option than obtaining a short-term personal loan or credit card cash advance.

You are planning to purchase an additional property using equity in your current home loan. Using a Deposit Bond guarantee, you can reduce your interest costs by delaying payment of your cash deposit until settlement.

A once only premium is paid upon approval of your Deposit Bond guarantee. Depending on the term and amount of your guarantee, this premium will generally be less than the cost of redrawing on your mortgage, borrowing via a personal loan, or even using your savings.
The example below is based on a short term Deposit Bond guarantee of $40,000 for 6 months.

At AIMS Home Loans Campbelltown we clear away the confusion, we save you time
and take the stress out of borrowing!
So if you need a pre approved home loan, or a Deposit Bond, simply call Ken on 4628 8058 or email kenford@aimsloans.com.au  and experience our fast and friendly service!