We are looking to buy a property at auction in Brisbane (up to $500,000) and need $40,000 as a deposit on the fall of the hammer. The auctioneer has agreed to the deposit amount and type.
We have $10000 in savings and will be using the first home owners grant to reach the 5% value, and borrow the remaining 95%.
We are pre-approved for the loan amount, subject to bank valuation, all info supplied by us being true and correct, agreeeing to the terms and conditions, proof of assets and liabilities, etc.
We have tried a number of deposit bond places but they will not issue a bond because:
a: we do not have unconditional approval
or
b: we are borrowing more than 80% of the properties value and there are conditions attached to the loan approval.
We feel stuck in a circle of needing a valuation to get unconditional approval - needing unconditional approval to get the deposit bond - needing the deposit bond to get a contract - needing a contract to get a valuation.
One place said they would issue a letter of offer, which would become a bond certificate once unconditional loan approval was granted. Why would I pay them to do that when unconditional loan approval means the purchase will proceed anyway?
Can anyone recommend a deposit bond place that will issue a deposit bond in this situation?