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What is a deposit bond and how do I arrange one?

Sometimes a lender will provide a cash substitute to the seller on the buyer's behalf, with the intention that the buyer will later pay the deposit for the property at settlement. This is known as a deposit bond.

It can beneficial to a buyer as it gives them a larger time frame to organise their finances before settlement. Not all lenders offer this service directly. However, there are third parties that can assist.

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