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.

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 A+ rated, secure, trusted and widely accepted.

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.

A digital bond is a secure, paperless and encrypted deposit bond. Using QR technology, the bond can be securely shared between digital devices, enabling you to secure your new property faster. The QR technology allows parties to verify the authenticity of the bond through our website.

The terms and conditions of the bond can be found when viewing or verifying the digital deposit bond. This can be done by clicking on the link in the email you received or by going to the ‘Verify Bond’ page on our website and entering the required details.

Short-term deposit bonds are available for up to 6 months and can be used to secure an established property, including houses, units and land. Our deposit bonds give you the flexibility of securing a property at auction or private treaty and the convenience of being ready to buy when you have found the right property.

Long-term deposit bonds can be used to secure property sold off-the-plan, under construction or vacant land where an extended settlement period is required for periods up to 66 months. Using a deposit bond when buying off-the-plan will allow a purchaser to retain their cash in savings or other investments up until settlement. Saving you thousands on investment returns.

Applicants can either apply directly on this website or through an accredited Deposit Power mortgage broker, conveyancer, lender or finance specialist.

Yes. Our auction bonds (also known as house hunting bonds) are valid for 6 months, giving you the freedom to house hunt and bid at auctions. When you are the successful bidder, you will be required to sign a contract of sale and place a deposit to secure the property. At this stage, you will need to forward your deposit bond to the vendor’s representative.

Within 7 days of the exchange of the contract of sale, you must send a copy of the exchanged contract of sale to us at [email protected]. This will enable us to register the vendor’s details on the bond.

Yes. We understand that depending on negotiations between the purchaser and vendor, deposit amounts can vary anywhere between 1% and 10% of the purchase price. We also know that at times, a purchaser may want to split their deposit between cash and a deposit bond. Deposit bonds are designed with this flexibility in mind.

All deposit bonds have an expiry date. A deposit bond expires on the earliest of when:

a) The contract of sale is completed; or
b) The Authorised Manager on behalf of the Underwriter pays the amount required to be paid under this Deposit Bond; or
c) The contract of sale is terminated or rescinded and, in either case, the vendor has accepted in writing the termination or rescission and the purchaser is entitled to a refund of the deposit; or
d) 5:00pm Sydney time on the earlier of the date of expiry or, if the date of expiry falls on a weekend or a public holiday in Sydney, the immediately preceding business day.

Deposit bonds are issued on the understanding that the purchaser remains responsible for the deposit amount that is being guaranteed by Deposit Power. Signing and agreeing to the counter indemnity and acknowledgement in the application form is the purchaser’s acknowledgement of their responsibility and liability in the event that they default under the terms of the contract of sale.

In simple terms, should the purchaser default under the purchase contract and the vendor makes a claim, Deposit Power will seek repayment of the claim amount from the purchaser.

The deposit bond is legally valid and available in all states and territories in Australia.

Deposit Power bonds are underwritten by HDI Global Specialty SE (HDI). HDI holds a financial strength rating of A+ from both Standard & Poor’s and A.M. Best.

In the event the purchaser is unable to settle, you or your legal representative can submit a claim to Deposit Power. We process and pay all valid claims within 2 business days.

Deposit Power has been issuing deposit bonds in Australia for over 30 years and are widely accepted by real estate agents, solicitors, conveyancers and vendors.

DP Bonds Pty Ltd trading as Deposit Power is an Authorised Manager of HDI Global Specialty SE (HDI).

HDI is a global insurance group, with 9 branches operating in 19 countries across the world and 120 years of experience in offering international insurance.

 HDI holds a financial strength rating of A+ from both Standard & Poor’s and A.M. Best.

HDI is part of the Talanx Group, which has a premium income amounting to EUR 53.4 billion.

Deposit Power has been issuing deposit bonds in Australia for over 30 years and are widely accepted by real estate agents, solicitors, conveyancers and vendors.

This term is used when referring to a title for established properties where the land has been registered with the Land Titles Office (or similar department, depending on the state) and have therefore been assigned a “Lot” and “DP”/”SP” number (DP = Deposited Plan, SP = Strata Plan). These details will be noted on the contract of sale in the land section and in most cases will result in a specific settlement date being scheduled. Registered properties generally have a settlement date within 6 months from the contract date. In this scenario, a short-term deposit bond is ideal for securing a registered property.

Unregistered properties are incomplete land titles and are therefore not ready to be registered with the Land Titles Office (or similar department, depending on the state).

This is common when purchasing off-the-plan apartments and in some cases vacant land and will be clearly noted as unregistered in the contract of sale in the land section. As the construction is ongoing, a specific settlement date is unable to be provided by the vendors and instead a “Sunset” or “Registration” date will be noted in the contract of sale. Unregistered properties usually require a long-term deposit bond in order to fulfil the deposit clause in the contract of sale.

In certain circumstances, we may require parties who are not listed as purchasers in the deposit bond application to stand as guarantors and complete our Guarantee & Indemnity form. Completing the Guarantee & Indemnity form ensures that all parties, including guarantors, are fully aware of their obligations.

Guarantor parties fall into the following categories:

• Co-owners of existing property

When applying for our bonds and the applicant’s existing property is co-owned with a person who is not applying for the bond, we may require the co-owner to be a guarantor on the bond application and in so doing, they will be required to complete our Guarantee and Indemnity form. 

• Company Directors

When a company (including a Company as Trustee for a Trust) is applying for a deposit bond the company directors are required to authorise the application form and will also be required to complete the Guarantee & Indemnity form. 

• Family Members

At Deposit Power we understand that many people get their start in the property market with help from their family. In situations where first home buyers would not be eligible for a bond, we can consider an application where a family member will stand as guarantor. To stand as guarantor, family members need to own existing property with sufficient equity to satisfy our assessment requirements. Family members acting as guarantors are required to complete the Guarantee & Indemnity form.

Property developments can often experience delays beyond the vendors control, it is standard practice for a “Sunset” or “Registration” date to be inserted into the contract of sale in lieu of an actual settlement date. This date indicates when the property must be registered by (without which settlement cannot occur).

The Sunset/Registration date is usually found in the special conditions of the contract of sale and dictates the term that a deposit bond must be issued for. As with any contract, each clause should be read in the context of the entire contract, and we therefore recommend that you refer to your legal representative when trying to determine the Sunset/Registration date (some contracts may contain wording or additional clauses that effectively extend this date). These types of property purchases usually require a long term 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.

Refunds for short-term deposit bonds will only be considered where the deposit bond has not been used (provided to the vendor/s) and the refund request is received by Deposit Power within 30 days of the date of issue of the bond. An administration fee of $290.00 will be deducted from any refund amount that relates to short-term deposit bonds.

For long-term deposit bonds, a refund will be considered where the deposit bond has not been used (provided to the vendor/s) and the refund request is received by Deposit Power within 30 days of the date of issue. An administration fee of $700.00 will be deducted from any refund amount that relates to long-term deposit bonds.

A rebate may be considered for long-term deposit bonds in the event the property purchase has settled and the refund request is received by Deposit Power with at least 6 months remaining before the deposit bond expires. To apply for a rebate the applicant must provide a covering letter from the vendor’s solicitor confirming the date the property transaction settled.

Should the purchaser default under the contract of sale, the vendor may lodge a claim on the deposit bond for the deposit amount. Upon receipt of a claim, Deposit Power as Authorised Manager of the Underwriter, assesses the claim and if valid makes payment to the deposit holder noted in the contract of sale. Deposit Power will then seek to recover the deposit amount from the purchaser.

If the purchaser defaults under the terms of the contract of sale, the vendor will be entitled to make a claim on the deposit bond. To make a claim, the vendor or their legal representative must provide documents as described in the terms and conditions of the deposit bond, a sample of which can be viewed on this website.

As the Authorised Manager of the Underwriter, DP Bonds Pty Ltd (trading as Deposit Power) is authorised to accept, assess and pay valid claims.

Deposit Power bonds are underwritten by HDI Global Specialty SE (HDI)

HDI has 9 branches operating in 19 countries across the world and 120 years of experience in offering international insurance.

HDI holds a financial strength rating of A+ from both Standard & Poor’s and A.M. Best.

HDI are part of the Talanx Group, which has a premium income amounting to EUR 53.4 bn.

Deposit Power operates as an Authorised Manager for HDI providing administration, underwriting and claims payment services.

Deposit Power continues to act as agent for Lombard Insurance Company Limited on all historical deposit bonds issued prior to October 2023.