What is a Deposit Guarantee – what are the benefits?

Deposit Guarantees replace the standard 10% cash deposit required by a vendor from an “off the plan” purchaser. Deposit Guarantees are a flexible and secure option for purchasers.  A purchaser can use their existing property or other investment as a guarantee for the 10% deposit.  The purchaser uses their existing house as security and we prepare documents that guarantee payment to the builder / developer.  Everything is simple and everyone benefits!

Utilizing main stream bank lending criteria, Forza has perfected the Deposit Guarantee to provide a far more secure alternative to the standard insurance backed Deposit Bond.

Forza upon receipt of an application undertakes a full credit analysis of the purchaser, including confirmation of their equity base. If a satisfactory report on the purchaser is completed by Forza then a Deposit Guarantee will be issued with the requisite security taken over their fixed assets.
This method of Deposit Guarantee is a far more cost effective alternative to standard financing products.

Coupled with its speed and convenience, a Forza Deposit Guarantee opens the door to safe and alternative options for securing a property purchase.

A Forza Deposit Guarantee is a perfect option to secure "off the plan" sales.  A Forza Deposit Guarantee provides the comfort to Developers who seek a secure means of binding a purchaser to a long term settlement contract. In the event of default by a purchaser, Forza will payout the Deposit Guarantee to the Developer with the added comfort that the Guarantee has been issued with equity as security.

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Where are Deposit Guarantees utilized?

A Forza Deposit Guarantee is a recognized method of consideration under a pre-sale contract. Potential purchasers may have their cash tied up in another property or investments and will be available at settlement.  This allows Developers to market to a far wider purchaser base, and particularly to those who have substantial equity but limited cash supplies. The forgoing of the standard 10% cash deposit increases potential purchasers who recognize the cost of a Forza Deposit Guarantee is minimal in comparison to other bridging and mezzanine options. A Forza Deposit Guarantee can be utilized to secure purchasers of long term settlement projects (12 months or longer) in developments such as unit residential, house and land packages, commercial and industrial and leasing.

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Who can apply for a Forza Deposit Guarantee?

The answer is quite simple, any potential purchaser, be they working, unemployed or self employed, who has equity in a fixed asset equal to 3 times the Deposit Guarantee amount. Issues such as bad credit are irrelevant if the purchaser has equity to cover the transaction. Self employed applicants will appreciate the limited supply of information required when completing an application for a Deposit Guarantee. It has remained the aim of Forza to simplify the process of obtaining a Deposit Guarantee in comparison to many Bond and Mortgage Redraw options.

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Why do purchasers like Deposit Guarantees?

More often than not the cash required for a 10% deposit is tied up in their current home or other types of investments.  Bridging finance or lending finance from a lender usually carries high interest rates and can be time consuming to organise.  Deposit Guarantees offer an alternative that is secure and efficient and can save you time and money.

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What Period of Time do Forza Deposit Guarantee's cover?

From 12 to 48 months.

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How Do purchasers Apply?

They go to the Section “To Apply” on the horizontal menu bar at the top of the page and follow the instructions For any other queries, our contact number is 1300 726 964 during work hours.

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Are Forza Deposit Guarantee’s legal documents?

Yes Forza Deposit Guarantee's are legal documents.

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Are Forza Deposit Guarantee’s available Australia wide?

Yes, Forza Deposit Guarantee’s can be issued for property purchases in Australia and New Zealand.

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What is the Counter Indemnity Agreement?

Forza Finance issues Deposit Guarantees on the basis that the purchaser will pay the vendor the amount of the Deposit Guarantee on the settlement date.  The Counter Indemnity Agreement is part of the application form.  It only becomes applicable if the purchaser defaults under the Contract of Sale.

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What happens if the purchaser default’s under the Contract of Sale?

The vendor nominated in the Contract of Sale will recover the money from Forza Finance and then Forza Finance will seek recovery from the purchaser via the Counter Indemnity Agreement.

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How long is the Forza Deposit Guarantee valid for?

The Forza Deposit Guarantee expires on completion, termination, expiry or rescission of the Contract of Sale – whichever happens first. 

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How long does it take to get a Forza Deposit Guarantee approved?

Forza Finance can usually turn around an application in 24-48 hours.

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How does the vendor / vendor's solicitor / property marketing or agent benefit from Forza Deposit Guarantee’s?

-          Vendor: by selling to a qualified purchaser

-          Property Marketing or Agent:  by allowing a sale to occur to a purchaser who may not have a cash deposit but are financially capable of making the purchase

-          Vendor’s solicitor:  allows an efficient and streamlined process

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Thanks for your interest. We guarantee to do our best to help you make more sales …. more easily.

From the Team at Forza Finance