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Paying 10% deposit at auction

Discussion in 'The Buying & Selling Process' started by P.M.G., 13th Feb, 2016.

  1. P.M.G.

    P.M.G. Member

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    If I have a IO Loan A with borrowings against equity in PPOR to be used to pay 10% deposit, a further 10%, stamp duty and disbursements; and another Loan B for the remaining 80% to be paid at settlement. Given Loan A does not have a cheque facility how do I pay the 10% deposit at auction?
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    Deposit bond?
     
  3. GoOnAndTell

    GoOnAndTell Well-Known Member

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    you call the agent at least a week out and let them know and give them options on how you will pay on the day and the balance of the deposit soon after. I am sure there is a way they will work around (e.g. money order for $5k and balance eft within a week). But given cheque books are free now i don't see why you wouldn't get one.

    Typically i offer a $5k cheque on the day as i don't want to move 10% to my main account every auction we go to.
     
  4. Bran

    Bran Well-Known Member

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    Most of the recent ones I have been to, deposit is payable the next business day, by whichever means you like. I haven't had to worry about a cheque on the day.
     
  5. P.M.G.

    P.M.G. Member

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    What is a deposit bond? Have you used one before?
     
  6. York

    York Finance Broker Business Member

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    Used as a substitute for cash deposit. It's a guarantee that you'll pay the vendor the deposit amount at settlement.