Hypothetical scenario

Sylvia was keen on two properties where the auctions were a month apart.

The funds she had saved to use as a deposit were earning high interest, in a fixed term deposit which had a few months remaining on its term. Sylvia wanted to avoid taking money out of her fixed term deposit, primarily because if she broke her fixed term deposit the interest rate she was earning on it would be reduced, and there was no guarantee that she would be successful at auction. She also found that the fees involved in obtaining a deposit bond through RAMS were significantly less.

The RAMS solution

Sylvia contacted the real estate agents and informed them she wished to bring a RAMS deposit bond with her to the auctions to use as a deposit, should she be the successful bidder. The agents advised Sylvia that the vendors were agreeable to payment of the deposit by way of deposit bond. Sylvia then applied for and obtained a deposit bond through RAMS. While she was unsuccessful at the first auction, Sylvia was the highest bidder at the second, and she could confidently use her RAMS deposit bond as the deposit for her new home. As it turned out, the vendors were still looking for their next property, so settlement looked like being extended. Sylvia was flexible on the settlement date as her money was still earning interest in her fixed term deposit. And for a first home buyer, every dollar counts.