Home Buyers
I want to buy a home without a traditional bank bond.
An alternative route to home ownership through a structured payment agreement rather than a conventional bank bond.
The Challenge
What This Scenario Looks Like
Many prospective home buyers are unable, or unwilling, to secure a traditional bank bond. Bank credit criteria, deposit requirements and interest costs can place home ownership out of reach even where the buyer can comfortably afford monthly payments.
How an Instalment Sale Agreement May Help
A RentAssist Instalment Sale Agreement allows the buyer and seller to agree the purchase price, deposit, monthly instalment, term and balloon payment upfront. The buyer takes occupation and pays the seller directly under a professionally structured, legally documented agreement.
Potential Benefits
- Purchase price is agreed at the start of the agreement
- Structured monthly instalments in place of a bank bond
- May remove the need for traditional bond approval at the outset
- Payments can be credited towards the purchase price where contractually specified
Things to Consider
- Transfer typically occurs only once the purchase price and contractual obligations are settled
- A meaningful deposit is normally required
- The buyer must plan for the final balloon payment
- Every agreement is subject to affordability and legal review
A Practical Example
A buyer with a strong income but limited bank finance options agrees a purchase price with the seller, pays a deposit, moves in and pays a fixed monthly instalment for an agreed term before settling the balloon payment.
Frequently Asked Questions
Do I need a bank bond?
Not necessarily at the start. Some buyers arrange bond finance later to settle the balloon payment, while others use savings, investments or the sale of another asset.
When does the property transfer into my name?
Transfer normally takes place once the purchase price and contractual obligations under the Instalment Sale Agreement have been fulfilled.
Next Step
Discuss Your Property Situation
Contact RentAssist to explore whether an Instalment Sale Agreement may be suitable for your specific circumstances. Each transaction is subject to legal, financial and commercial review.