Deposit Assure releases instant issuance

The FLEXI Deposit Bond is a pre-approved deposit bond of up to 10 per cent of a home buyer’s maximum intended purchase price.

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 has now moved to reduce the time bond customers need to wait before securing their property.

After placing a successful bid at an auction, for example, a buyer can update the FLEXI Deposit Bond with the particulars of their new property purchase in real time on their mobile device. The buyer then needs to upload a photo of the contract of sale, complete the deposit bond form, and pay the fee to update the bond and enable vendor acceptance.

Deposit Assure said that the new instant issuance feature has 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 is spurring urgency among buyers, who want to move fast to secure their dream home so they don’t miss out, the company said.

Indeed, Deposit Assure has reportedly seen a 333 per cent increase in FLEXI Deposit Bonds issued in this current quarter, when compared to the same quarter last year.

Deposit Assure chief executive Etienne Rizzo commented: “Our FLEXI Deposit Bond is already designed to deliver the flexibility that brokers, real estate agents, and clients are asking for, meaning buyers have the flexibility to bid at multiple auctions knowing they can secure their ideal home if they are successful.

“Now, our latest innovation means they can issue the deposit bond for vendor acceptance immediately after the auction. No more waiting until business hours for the bond to be updated with details from the contract of sale — clients can do it all from their mobile while sitting in their new home after making the winning bid.”

Deposit Assure’s deposit bonds are underwritten by QBE Insurance (Australia) Limited and valid for six months.

[Related: New deposit bond product launched by Deposit Assure]