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From: Debra L
I have a couple of questions in relation to Deposit Bonds and Bank Guarantees.
Firstly, I have been told that with Deposit Bonds you require a ratio of 5:1 of Equity to the amount being secured, and with a Bank Guarantee it is a 1:1 ratio.
If you are getting a Deposit Bond or Bank Guarantee, using your existing PPOR as security and your PPOR is worth $300K with a $150K loan ($150K equity) can you secure deposit bonds/bank guarantees against the full $150K or only a percentage of your equity (80 or 90%)?
Secondly if you are getting a bank guarantee, do you have to get it through the bank that your current loan is through, or can you get one from another bank, and just secure it against your property?
Thank you in advance for your responses.
Debra
I have a couple of questions in relation to Deposit Bonds and Bank Guarantees.
Firstly, I have been told that with Deposit Bonds you require a ratio of 5:1 of Equity to the amount being secured, and with a Bank Guarantee it is a 1:1 ratio.
If you are getting a Deposit Bond or Bank Guarantee, using your existing PPOR as security and your PPOR is worth $300K with a $150K loan ($150K equity) can you secure deposit bonds/bank guarantees against the full $150K or only a percentage of your equity (80 or 90%)?
Secondly if you are getting a bank guarantee, do you have to get it through the bank that your current loan is through, or can you get one from another bank, and just secure it against your property?
Thank you in advance for your responses.
Debra
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