Deposit bonds for first home buyers
We’ve taken away the biggest barrier to owning your own home: the upfront cash deposit. So go for it. Get ready to make your move.
How can deposit bonds help first home buyers?
It’s common… you’ve seen the perfect place but you don’t quite have access to the full cash deposit. If you’re in a situation like this, a first home buyer’s deposit bond will free you up to buy, instantly.
Instead of having to dip into savings or investments, you can use a deposit bond as a financial guarantee for the property deposit until settlement. This gives you the ability to move quickly – which is especially useful in competitive markets or at auctions. For a small, one-off fee, we can issue you with a deposit bond – helping you overcome financial barriers to become a homeowner.
Benefits of using a deposit bond to buy your first home.
A deposit bond provides a flexible alternative to a cash deposit. Here are some ways that our deposit bonds for first home buyers can put you ahead of the game:
No need for an upfront cash deposit
You might not currently have full access to the required funds, or you might need your savings for moving-related expenses. Either way, a deposit bond makes it possible to secure the property now, and pay the cash deposit at settlement.
Act quickly to secure your first home
Seen a home that suits your needs perfectly? A deposit bond makes it possible to make an offer now.
A smarter way to buy property
The one-time fee of a deposit bond is usually a cheaper alternative compared with other financing options.
Keep your money working
If your funds are tied up in other investments, a deposit bond makes sure it can keep generating returns for you for longer.
Peace of mind
With a House Hunting Bond you can get peace of mind – especially when buying at auction.
Valid from 0 to 6 months and up to 66 months (5.5 years)
Tailored to the property you are buying. Suitable for private treaty and off-the-plan purchases.
How deposit bonds simplify the journey for first home buyers.
With our fast and convenient online application process, you can obtain your first-home buyers deposit bond in a matter of minutes. Here’s how it works:
It’s that simple.
1. Application process
Simply apply online, submit the necessary documents, and we’ll assess your application on the spot.
2. Receive your deposit bond
You’ll receive approval almost immediately and we’ll send your deposit bond to your device as a QR code – ready to use immediately.
3. Usage and settlement
When you want to make an offer on a property, simply present your deposit bond to the seller (or real estate agent) as you would a cash deposit.
At settlement, you pay the full deposit price and the deposit bond will be discharged.
Eligibility criteria for first home buyers applying for deposit bonds.
To qualify for a first home buyer’s deposit bond, you’ll need to demonstrate that you’re able to meet the financial obligations of the property purchase. Here are the requirements:
Proof of identification
Driver’s license, passport etc.
Signed purchase contract
Loan pre-approval or proof of funds
e.g Guarantor Loan
While deposit bonds offer significant benefits, there are some limitations you should keep in mind:
- A deposit bond postpones a cash deposit, but it doesn’t replace it – you will still need to pay the full amount at settlement.
- Your deposit bonds come with an expiry date. In some cases, Deposit Power can offer extensions for longer settlement periods, ensuring you’re covered until your property is ready.
- Not all sellers accept deposit bonds. It’s best to confirm with the seller before you make an offer.
Parental guarantor responsibilities for deposit bond applications.
At Deposit Power, we recognise that many first-time buyers rely on family support to enter the property market. For buyers who may not qualify for a deposit bond on their own, we offer the option to apply with a family member acting as a guarantor.
To act as a guarantor for a first home buyer’s deposit bond, family members must own property with enough equity to meet our assessment criteria. Additionally, family members who agree to act as guarantors are required to complete the Guarantee & Indemnity form as part of the application process.
With a little help from family and Deposit Power, first-time buyers can get their foot on the property ladder.
First home buyer FAQs
Everything you need to know about deposit bonds for first home buyers.
What is a deposit bond?
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Can I use a deposit bond for auctions as a first home buyer?
Absolutely! Don’t miss out on your perfect home because of a cash deposit. With Deposit Power, you can bid confidently at any auction, even if your savings aren’t immediately accessible. Our secure digital bonds are accepted on the spot – meaning you can act fast when you find ‘the one’.
How much does a deposit bond cost for first home buyers?
At Deposit Power, we keep things simple with a single, upfront fee – no hidden charges or ongoing costs. Your fee depends on two factors:
For short-term bonds (up to 6 months):
- A small percentage of your deposit bond amount
For long-term bonds (up to 5.5 years):
- Based on both your deposit amount and how long you need the bond
Get a quote online to find out how much your first home buyers deposit bond fee will be.
How quickly can deposit bonds be issued?
Deposit Power bonds are delivered to you within minutes. We issue secure, fully digital deposit bonds that include a QR code for instant verification. Delivered straight to your device, they’re convenient and ready to use immediately.
Additionally, deposit bonds for first home buyers are easy to obtain – you can apply online and have your application approved almost instantly. For long-term bonds it may take a bit more time if we require any additional documents, but it can still be approved within hours (not days).
Learn more about how to qualify for a deposit bond.
Are deposit bonds a good idea?
When it comes to first home buyers’ deposits, bonds are a game-changer in today’s competitive property market. Deposit bonds allow you to keep your savings invested while house hunting, so you can earn better returns. You can also avoid the hassle of breaking term deposits or scrambling to collect a full cash deposit before settlement. With a digital deposit bond on hand, you can act quickly, particularly at auctions, when you find your perfect first home.
What documents do first home buyers need to apply for a deposit bond?
Applying for a deposit bond online with Deposit Power is quick and easy. Here are some documents you’ll need to provide:
- A copy of the signed purchase contract
- Proof of identification
- Proof of financial capacity
Learn more about how to qualify for a deposit bond.
Ready to secure your first home?
Take the first step towards homeownership today with a first home buyer deposit bond from Deposit Power. Apply online in minutes and get instant approval. Don’t let a cash deposit hold you back from securing your dream property – get started now.