House Hunting or Auction Bond
Don’t miss out on your dream property because you don’t have a cash deposit upfront - bid confidently with a Deposit Power House Hunting bond.
How an auction deposit bond makes auctions easier.
Auctions are exciting, but they come with challenges. Winning means paying a cash deposit on the spot – a hurdle for many buyers. That’s where auction bonds come in. Vendors and real estate agents accept them as guaranteed payment, so you can focus on winning the auction, not worrying about the deposit.
Say goodbye to cash-flow stress and hello to hassle-free bidding.
Is a deposit bond acceptable in an auction?
Yes – deposit bonds are widely accepted at auctions as an alternative to a cash deposit. Deposit Power’s House Hunting Bonds are secure solutions for auction participation, backed by our strong reputation in the real estate industry.
Deposit Power is an authorised agent of HDI Global Specialty SE (HDI) which holds a financial strength rating of AA- (Very Strong): the highest rating for deposit bonds in Australia
How auction deposit bonds work
Bidding at auctions can be fast-paced and competitive, requiring immediate financial backing. Deposit bonds are a smart tactic, allowing you to bid without needing a large cash deposit upfront.
Here’s how they work for auction buyers:
It’s that simple.
1. Apply online for instant approvals
- Complete the online application form
- Provide the required documents
- Demonstrate that you can complete the property purchase
2. Receive your auction deposit bond & bid confidently
- Deposit Power will issue your bond within seconds. Fully digital and secure, it will include a QR code for instant verification – so you can use it anytime you’re house hunting.
- Take the lead at auctions. Once the hammer falls, present your digital bond to the seller or their agent as your deposit.
3. Settlement
- Rest easy knowing your deposit is secured until settlement while your cash remains free for other priorities. At settlement, you pay the full purchase price including the deposit amount.
- The deposit bond expires once settlement is completed, The deposit amount is already factored into your final payment, keeping the process smooth and hassle-free – no extra steps, no surprises.
Benefits of using a deposit bond at an auction
Our House Hunting Bonds provide unmatched financial flexibility:
Only pay for the bond when you secure a property
Keep your savings and equity intact
Bid without cash deposit contraints
Quick approvals, so you're ready for auction day
Flexibility while searching for your ideal property
Compete against cash buyers
Who can use an auction deposit bond?
Auction bonds are game-changers for house hunters, helping them secure their property the moment they find it. With no need for a cash deposit, a deposit bond gives you an edge over the competition. Deposit Bonds are a great solution for:
Buying your first home
To help navigate tight budgets
Buying an investment property
Residential or commercial to keep your funds free
Upsizing or downsizing
Families who need flexibility with cash flow for a simultaneous settlement.
Qualifying for a house hunting bond
Getting a House Hunting Bond is easier than you might think. At Deposit Power, we work closely with you to find you the best bond for your circumstances. Whether you’re stepping onto the property ladder or expanding your portfolio, our team is here to guide you every step of the way.
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 Oroperty 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
Why use Deposit Power’s House Hunting Bond for auctions?
With a House Hunting Bond from Deposit Power, securing your dream property at auction is fast, simple and stress-free. Experience the confidence that comes with Australia’s most trusted deposit bond provider:
Power to bid
Combined with pre-approval, deposit bonds give you the power to bid up to your maximum limit across multiple properties
Instant access
Digital bonds provide instant access whenever you need them
Widely accepted
Deposit Power bonds are widely accepted, backed by our strong industry relationships
Expert team
Our expert support team is available to assist throughout your property journey
Auction deposit bond FAQs
Everything you need to know about deposit bonds for house hunting.
What is a deposit bond?
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What is a House Hunting Bond?
A House Hunting Bond, also known as an auction deposit bond, is a financial guarantee that replaces the need for an upfront cash deposit. It allows buyers to secure a property without immediate cash.
House Hunting Bonds from Deposit Power have a term of up to 6 months, providing flexibility for short-term property purchases. If you need a longer settlement period — such as for off-the-plan purchases — long-term deposit bonds are also available.
Are House Hunting Bonds accepted at auctions?
Yes, House Hunting Bonds from Deposit Power are widely accepted at auctions.
We’ll instantly deliver your bond to your device as an encrypted QR code, so sellers can verify its authenticity on the spot. With no paperwork or delays, a deposit bond provides vendors with the same security as a cash deposit – so you can bid confidently without tying up your cash.
How long does it take to get a House Hunting Bond?
Need an edge in a competitive property market? Deposit Power makes the application process fast and hassle-free. For House Hunting Bonds with a 6-month term, approval is often instant and you can receive your digital bond within minutes.
You’ll have the auction deposit bond you need, exactly when you need it.
How much does a House Hunting Bond cost?
Deposit Power charges a one-time fee to issue your deposit bond, with no hidden costs or ongoing charges.
For short-term House Hunting Bonds (up to 6 months), the fee is calculated as a percentage of the bond amount. For long-term bonds, the fee depends on both the bond amount and the term length.
Get a quote online to find out how much your auction deposit bond fee will be.
Is a House Hunting Bond a loan?
No, a House Hunting Bond is not a loan, as no money is borrowed upfront. Instead, it acts as a guarantee – essentially an “I owe you” – promising the vendor that the full deposit amount will be paid at settlement.
A key difference is that deposit bonds don’t involve ongoing interest or repayments. They’re a flexible way to secure your property without tapping into savings or taking on debt before settlement.
Ready to bid? Call us on 1800 678 979 to discuss House Hunting Bonds, or get a quote online.