Determine your eligibility
Get in touch with us or fill out the Start Your Journey form to start the process.
Introducing the Downsizer Deposit Bond.
The new way to downsize from your current home with a no cash deposit.
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What is a Downsizer Bond?
A Downsizer Bond is the smart alternative to paying cash for the deposit on your next home. Whether your money is equity in your existing home or a savings account, Downsizer can provide you with a bond that will act as the cash deposit. When you settle on the property, you then pay the full purchase amount. It is so easy and affordable. There are no surprise costs for you, just a one-off transaction fee from as little as $1,500. The bond size you qualify for will directly correlate to the amount of equity you have.
How the Downsizer Bond works.
Use the equity in your current home to qualify for a no cash deposit Downsizer Bond on your next off-the plan property.
Start your bond application
A Downsizer expert will be in touch to help assess your eligibility in just three simple steps.
Secure your bond
Once approved your Downsizer Bond will be emailed to you in as little as 24 hours.
It’s easy, secure and cost-effective
Benefits of the Downsizer Bond
-- Purchase your next home with zero cash deposit using the equity in your current home.
-- Stay in your current home until you are ready to sell or your new off-the-plan property settles.
-- Keep your long-term investments in place to continue generating income until settlement.
-- Application is easy and the Downsizer deposit bond can be available in as little as 24 hrs.
-- The no cash deposit Downsizer Bond is flexible with terms available for up to 5 years.
See how thousands of Australians are saving using the Downsizer Deposit Bond.
Start Your Journey in just six simple steps
1.
When are you looking to move
2.
Have you chosen your next property
3
Where you would like to live
4.
Your estimated budget
5.
Additional information you may need
6.
Your contact details
Frequently Asked Questions
View All FAQs
The net equity in your existing property must be greater than the purchase price of the new property.
Home net equity is the difference between your property’s market value and the balance of your mortgage. Downsizer can provide you with the current market value if you don’t already know it.
Once you have submitted your application, the approval process can be done in as little as 24 hours, assuming you have submitted all the required information and documentation.
Before exchanging contracts on your new property.
Yes, a buyer can combine a Downsizer Bond with a cash sum to purchase a new property.
A bond is issued as a certificate and is a guarantee that you will be able to settle on your new property when it is ready to move into. It uses the net equity in your current home as security and allows you to purchase your next home without a cash deposit. A reverse mortgage allows you to borrow money for the deposit of your next home using the equity in your current home as security. The interest charged on the loan compounds over time, so it gets bigger and adds to the amount you borrow. You pay the loan in full including interest and fees when you sell your current home
Bridging finance is a short-term loan of up to 12 months and is designed to “bridge” the financial gap between buying your new home and receiving the funds from selling your old one. The repayments are based on the remaining mortgage of your current home and the purchase price of your new home, which can make it a costly exercise. The Downsizer Bond is a cheaper alternative as it acts like an IOU for the deposit on the new property instead of you having to pay the full deposit in cash from the outset.
There is no impact on the bond. You may need alternative accommodation whilst you wait for your new property to be ready.
On the settlement day of your new home, you pay the full purchase price of the home. The bond is then cancelled as it has served its purpose
The developer/seller will resell the property. There is no penalty if the property is resold at a higher price than your purchase price. If the property is resold at a loss, the maximum penalty is 10% of the purchase price
The benefit of using the bond is that you won’t have to be involved in any legal proceedings to recoup your 10% deposit, you will only forfeit the amount you paid for the bond
Deposit Power, a subsidiary of the Lombard Insurance Company, guarantees the bond. Bonds issued by Deposit Power have an S&P (Standard & Poors) A+ rating which means it is financially secure and those using the Downsizer Bond can feel safe that they are using a globally rated business
Get in touch
Simply enter your details below and a member of the Downsizer team will be in contact with you shortly.
