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Buying property can move quickly – especially in competitive markets or at auction.
If your savings are tied up, you’re waiting on the sale of another property, or you simply want to keep your funds working for you until settlement, a Deposit Power deposit bond can help you secure your purchase sooner.
Our Deposit Power Customer Success Team answer the most common questions buyers ask – helping you plan and know what to expect when using a deposit bond.
Key takeaways
- You don’t always need cash upfront
A deposit bond can replace the cash deposit required at exchange. - A deposit bond is not a loan
There are no repayments or interest – just a one-off fee. - It helps solve timing challenges
Ideal if you’re waiting on funds or buying off-the-plan. - It’s widely accepted and secure
Deposit bonds are commonly accepted by vendors, real estate agents and solicitors across Australia.
How can I buy a house with no deposit?
It’s common… you’ve found the ideal property, but you don’t have the full cash deposit right now.
Many buyers are in this position because:
- You’re buying your first home and trying to save the cash deposit
- Your savings are tied up in investments or savings accounts
- You’re waiting for the sale and settlement of another property
- You want to keep your cash working for you
A Deposit Power deposit bond can help you secure your property now without using your money or having to free up equity before settlement.
Here’s how:
- A deposit bond can be issued for up to 10% of the purchase price
- When exchanging contracts, you provide the digital deposit bond to the vendor, instead of a cash deposit
- It acts as a legal financial guarantee, telling the vendor the full deposit amount will be paid at settlement
It’s a simple way to more forward quickly and secure your ideal property now – without needing your cash up front.
When does the deposit bond fee get paid?
The one-off Deposit Power deposit bond fee is paid when the bond is approved and issued, before you use it in a contract of sale.
There are no ongoing fees or interest charges.
How quickly can a deposit bond be approved?
Securing a deposit bond is quick and efficient
- Get a quote (2 mins) and apply online (under 10 mins) with all the required documents.
- Receive your digital deposit bond approval to your phone with a secure QR code.
- Pay the one-off fee when you need the deposit. There’s no ongoing fees / interest
- Pay the full deposit directly at settlement.
For short term bonds 6 months and under, approval is received instantly online in most scenarios.
For long term bonds it may take a bit more time if we require any additional documents, but it can still be approved within 24 hours (not days).
What do I need before I apply for a deposit bond?
To help your application go smoothly and be approved quickly, it helps to have the following ready:
- Details of the property purchase
- Contract of sale (if available)
- Information about how the purchase will be funded (such as loan approval or sale proceeds)
- Identification and financial details
Learn more on how to qualify and apply for a deposit bond
How safe are deposit bonds for clients
Deposit Power bonds are “AA-” (Very Strong) rated from S&P – the same rating as the Big 4 banks in Australia.
They are legal financial guarantees and widely accepted.
If a valid claim is made because a buyer fails to settle, Deposit Power pays the vendor the deposit amount covered by the bond and then seeks reimbursement from your client.
Digital bonds include secure verification features, giving vendors and agents confidence in their authenticity.
Learn about the safety of deposit bonds and who underwrites Deposit Power.
How do I introduce and talk to deposit bonds to clients?
The most effective way to introduce deposit bonds is as a timing solution, not a finance product.
For example:
“If your savings are tied up or you’d prefer not to use your cash right now, a deposit bond could allow you to secure the property without paying the cash deposit upfront.”
Watch how Lead Broker David Newman, from Core Mortgage Broking, identifies the need for a deposit bond and introduces them to his clients <include David’s video or link to>
The key is positioning:
- It’s not extra debt
- It doesn’t replace their home loan
- It simply replaces the need for an upfront cash deposit or for you to have to free up equity
How do I talk to vendors, real estate agents and solicitors about accepting a deposit bond?
Most agents and solicitors are familiar with deposit bonds. If you do experience questions or resistance, here’s are some suggestions on how to position it clearly:
- It is a legal substitute for a cash deposit
- It protects the vendor in the same way a cash deposit does by guaranteeing they will receive the full deposit
- Deposit Power always encourages confirming acceptance with the vendor or agent before exchange – particularly for auction purchases
Can deposits be part-cash / part bond?
Yes. Vendors and buyers can agree to a combination of part cash and part deposit bond.
This flexibility can help:
- Bridge short cash gaps
- Strengthen negotiations
- Make a deal work where full cash isn’t immediately available
Key takeaways
Deposit bonds are a practical, flexible solution that can help you:
- Keep deals moving
- Solve timing issues
- Support clients without increasing their debt
- Strengthen your value as a strategic adviser
They’re not a loan. They’re not complex.
They’re simply a trusted substitute for a cash deposit.
When cash timing is the only barrier, a Deposit Power bond can be the difference between missing out – and securing the property.
GOT A SCENARIO? Speak to our expert BDM team <insert contact module>.
Download the complete Brokers guide to deposit bonds
Learn more <Link to Broker hub>