What is a deposit bond?
It’s a financial guarantee in the form of a digital certificate that acts as a substitute for a cash deposit when purchasing a property. It is not a loan.
A deposit bond requires an eligibility assessment to ensure you have the financial capacity to settle on your purchase, however it does not tie up your cash or assets. When you provide a deposit bond to the seller, this serves as a promise that the deposit amount will be paid at settlement.
With a deposit bond from Deposit Power, you can secure a property quickly and easily – giving you extra time to sort out the cash deposit and pay the full 100% of the property value at settlement.
What it is
- A deposit guarantee
- Secure as cash
- Legal and trusted
- Widely accepted
What it isn’t
- A home loan
- A bank guarantee
- Expensive
- Full of red tape
The property buyer’s cheat code
Swing securing Off-the-plan property in your favour
Get the power to keep moving in the property market
How do deposit bonds work? Step by step
It’s common… you've found the ideal property but lack the full cash deposit or don't wish to tie up your funds while selling your current property. Don't worry: with a deposit bond, you can prepare for a purchase, even without a full deposit.
It’s that simple.
1. Application process
Submit your application to Deposit Power with details about the property purchase and your financial position.
2. Quick approval
You’ll receive approval almost immediately and your digital deposit bond will be delivered to your device within minutes.
3. Purchase and settlement
Present the digital deposit bond to the seller or real estate agent instead of a cash deposit when signing the contract of sale.
Pay the full purchase price, including the deposit amount, at settlement. The deposit bond expires once settlement is completed.
How secure are deposit bonds?
Deposit Power bonds are "AA-" (Very Strong) rated from S&P!
The same rating as the Big 4 banks in Australia. We’ve been issuing deposit bonds in Australia for over 30 years. Our deposit bonds are widely accepted by real estate agents, solicitors, conveyancers and vendors – making us trustworthy, reliable and secure.
Australia's highest rated deposit bonds!
Underwritten by HDI Global Specialty SE with an "AA-" (Very Strong) credit rating from Standard & Poor’s, for strength and security you can trust.
What can a deposit bond be used for?
We issue bonds for Short-term bonds which gives you the confidence and convenience for auctions or private treaties and for Long-term bonds when purchasing off-the-plan builds or home and land packages so you can have your money in your bank earning you interest, rather than a trust.
Short-term bonds
From 0 to 6 months
Can be used to secure:
- An established property
- Residential
- Commercial
- Investment
Long-term bonds
From 7 to 66 months (5.5 years)
Can be used to secure:
- Off-the-plan
- Under construction
- Home and land packages
- Vacant land
What are the benefits of a deposit bond?
Cash flow
By using a deposit bond instead of paying a cash deposit upfront, you can keep your funds in more lucrative investments or savings accounts, avoiding the need to tie up a large sum of money during the purchasing process.
Convenience
For buyers involved in competitive situations like auctions or private sales, deposit bonds provide convenience. Rather than scrambling to provide a large upfront cash deposit, a deposit bond allows you to move quickly and confidently to secure the perfect property.
Easy and fast
Deposit bonds are easy to obtain, you can apply online and have your application approved almost instantly. Because you only pay a small one-time fee for a deposit bond, this method is also very cost effective.
Secure & trusted
Our deposit bonds are the highest rated deposit bonds in Australia – “AA-” Rated Very Strong, same as the big 4 banks. You can’t get more secure than that. We are backed by HDI Global Specialty SE – a global, secure and established international insurer.
How to qualify for a long-term deposit bond
Getting approved for a deposit bond is simpler than you might think. Deposit Power offers flexible options to suit your situation, whether you need a short-term bond for a quick settlement or a longer-term solution for an off-the-plan purchase.
Short-term bonds
There are 2 ways to qualify for a deposit bond with a term of up to 6 months.
Option 1
The Fast Track
Funds to Complete Assessment Option
All you need to do is show us evidence that you will have the funds to complete the purchase such as:
- loan approval letter
- savings statement
- evidence of a financial gift
Option 2
Home Equity Assessment
Own Property with Equity Option
To qualify under this option, you must:
- own existing property with sufficient equity
- 1 x the deposit amount in equity for bonds of up to $150,000
- 2 x the deposit amount in equity for bonds over $150,000
Long-term bonds
Long-term deposit bonds are ideal for extended settlements and off-the-plan properties with with a term of up to 5.5 years.
Long-term
Long-term bonds
Home Equity Assessment Option
To qualify, for a long-term bond you must have equity of:
- 3 x the 10% deposit amount for bonds from 7 – 24 months
- 4 x the 10% deposit amount for bonds from 25 – 36 months
- 5 x the 10% deposit amount for bonds from 37 – 66 months
Trusted by over 1 million Australians
George, Broker
Stephen, Customer
Tony, Broker
Bryan, Customer
Louise, Customer
Kelly, Broker
Dilpin, Customer
Kim, Customer
Dean
Our Partners
What is a deposit bond?
Everything you need to know about deposit bonds.
What is a deposit bond?
Download form
What is a deposit bond?
A deposit bond is a substitute for the cash deposit required when purchasing a property. The deposit bond can be for any amount up to 10% of the purchase price. At settlement, the purchaser simply pays the full purchase price of the property.
Why would I need a deposit bond?
Our deposit bonds are used in place of a standard cash deposit. Accepted, secure and so, so simple….
There are many reasons why you can benefit from using a Deposit Power bond:
- If your cash is tied up in other investments, you can use a deposit bond as a substitute to secure your property.
- When attending auctions, a deposit bond can be used to secure your purchase, you don’t need to have the cash ready at the time.
- A much better option compared to a slow, costly and cash backed bank guarantee.
- Fast – you can get your Deposit Power bond within seconds of the bond being issued.
- Save thousands! Where settlement is more than 6 months away, customers are far better off leaving their cash in either their home loan offset or in a high interest saving account.
- It’s safe! If the development is not completed your cash is not at risk.
- Secure and trusted – Deposit Power bonds are "AA-" (Very Strong) rated, secure, trusted and widely accepted.
How can I apply for a deposit bond?
Applicants can either apply directly on this website or through an accredited Deposit Power mortgage broker, conveyancer, lender or finance specialist.
How quickly can I get a deposit bond?
Simply submit your application online and you will get an immediate response. Our deposit bonds are digital and delivered to you within seconds of being issued.
What is the fee for a deposit bond?
Deposit Power charges a one-off fee to issue the deposit bond. There are no other fees or ongoing charges involved.
The fee for a short-term deposit bond (with a term of up to 6 months), is calculated as a percentage of the deposit bond amount. Fees for long-term deposit bonds are based on the deposit bond amount and term required.
You can get a fee quote by clicking on the “Get a quote” button on this website.
Our Awards
8th Annual FinTECH Awards Best non-bank collaboration
Proptech Association Australia Award Most Innovative Established Supplier – Ownership, Affordability & Finance.