Deposit bonds for off-the-plan buyers
Deposit bonds can help you save thousands, enter the market now and pay the deposit later at settlement.
How does a deposit bond work for off-the-plan?
Why let your money get locked away in a developer’s trust account when it could be making money for you in other investments? With a long-term deposit bond, you can enter the market now and pay the deposit later at settlement.
Our deposit bonds can be used for off-the-plan units or houses and land packages. For a small one-off fee, we can issue a deposit bond in a matter of minutes, giving you the freedom and flexibility to secure a property now without tying up your cash.
How can deposit bonds help when buying a property off-the-plan?
Deposit bonds are ideal for off-the-plan property purchases, giving you the ability to secure your dream home or investment property without needing to provide an upfront cash deposit. Instead of tying up a large sum of money for a long time – sometimes years – you can use a deposit bond from Deposit Power.
Deposit bonds also bring ease and speed to the purchasing process. Deposit Power makes it quick and simple to apply online, so you can secure your deposit bond and lock in a property without delay. This gives you the flexibility to manage your finances and make confident property decisions.
Our buying off-the-plan deposit bonds offer the ultimate in flexibility:
- Can be used for off-the-plan units or house and land packages
- Suitable for property deposits of up to 10% of the purchase price
- Perfect for extended settlement terms (up to 5.5 years)
Benefits of using a deposit bond when buying off-the-plan.
It doesn’t make sense to give your money to a developer for an extended period of time when you could be using it to make money in your own investments. Deposit Power offers a simple and smart alternative to using a cash deposit to secure a property.
Deposit bonds offer a number of advantages:
Keep your money working
By avoiding liquidating investments or other assets prematurely, your money can continue to work for you up until settlement.
Cost
The one-time fee of a deposit bond is usually a cheaper alternative compared with other financing options.
Fast
Our deposit bonds can be issued online in a matter of minutes, so you can make property purchases faster – perfect for acting quickly in a competitive market.
Your savings stay liquid
You will have access to your savings in the period leading up to settlement, so you can spend it on things like moving expenses.
Here are some examples of how a long-term deposit bond can save you money:
With a deposit bond, you’re ready to invest in tomorrow without tying up your cash today.
Simplify and save: how deposit bonds work off-the-plan buyers.
Simple and convenient, an off-the-plan deposit bond makes it easy to secure property without tying up your funds.
Here’s how to get a long-term deposit bond quickly from Deposit Power:
It’s that simple.
1. Application process
- Get a quote to start the application process
- Complete the online application form
- Provide proof of income and assets
- Submit identification documents
- Demonstrate your ability to complete the property purchase
2. Issuance of the deposit bond
- If your application is successful, your deposit bond will be delivered within seconds
- Your deposit bond will arrive to your device as a QR code, ready to use immediately
3. Usage and settlement
- Present your deposit bond to the seller or real estate agent just as you would a cash deposit.
- At settlement, you pay the full price including the deposit amount. The deposit bond expires once settlement is completed. No additional payment is required for the original deposit amount, as it’s included in your final payment.
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 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
Who benefits most from deposit bonds for off-the-plan property?
Deposit bonds can help expand the world of property for everyone. Here, we’ll explore how deposit bonds can make the buying process easier while offering greater financial freedom:
Land and home package buyers
Deposit bonds are perfect if you’re looking to buy a land and home package. Whether that is for your first home, upsizing into a larger property, but haven’t sold your current property yet or if you’re downsizing and need a deposit for an off-the-plan apartment, a deposit bond makes it possible to buy now.
Here’s why a deposit bond is the no brainer for buying land and home packages:
- Save thousands: Allow your money to work harder for you in your investments or high-interest savings account
- Money back: You have a market leading rebate policy in case things don’t work out to plan
- Low fees: One-off fee paid only when ready to secure your property
First-home-buyers
A deposit bond gives first home buyers the opportunity to enter the property market and secure their dream home. With this deposit plan and a Guarantor loan option, you can get your foot in the door while keeping your savings intact for other home-related expenses.
Here’s why you should use Deposit Power for your first home buyers deposit:
- Fast and flexible: It’s quick and easy to apply for a deposit bond online
- Affordable entry: With a deposit bond, you can secure property now and then sort out the cash deposit at settlement
- Keep your savings: Rather than tying up your savings in a cash deposit, you can use a deposit bond to secure the property – giving you access to your funds for longer
Investors
Deposit bonds are ideal for investors – making it possible to keep your capital liquid for other ventures while you’re securing a property. Rather than having your money tied up in a deposit, you can use a deposit bond to secure property so your funds can work harder in other investments.
Here’s why a deposit bond is the smart choice for investors:
- Zero cash down: For a small one-off fee, your deposit bond can secure property while you keep your money free
- Move quickly: Avoid the hassle of rushing to sell other investments
- Qualify easily: With sufficient equity or capital, you can secure your digital bond online in minutes
- Grow your savings: Keep your cash deposit earning for you until settlement
Off-the-plan FAQs
Everything you need to know about deposit bonds for off-the-plan purchases.
What is a deposit bond?
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What does ‘buying-off-the-plan’ mean?
Buying off-the-plan means purchasing a property before it’s been built. Buyers make their decision based on architectural plans and developer-provided information such as floor plans, renders, and brochures, rather than viewing a completed property.
This type of purchase offers the opportunity to secure a property at today’s prices – often with only a deposit required upfront – while construction takes place over a set timeline.
One of the key advantages of buying off-the-plan is the potential for capital growth during the construction period, as the property’s value may increase by the time it’s completed. It also gives buyers the chance to customise certain features (depending on the development).
How long is a deposit bond valid for off-the-plan properties?
Deposit Power offers long-term deposit bonds – suitable for securing property sold off-the-plan or under construction. Long-term deposit bonds are best for situations where an extended settlement period is required (for periods up to 66 months / 5.5 years).
In certain circumstances, Deposit Power can allow extensions if needed. If, for example, there are delays in the settlement process or the property type involves a longer settlement window, the bond can be extended for an additional fee.
Are deposit bonds accepted by all developers for off-the-plan purchases?
The decision to accept a deposit bond is at the developer’s discretion. While some developers may prefer cash deposits, others are familiar with and comfortable accepting deposit bonds – especially those issued by reputable providers like Deposit Power.
We recommend that you confirm with the developer or real estate agent early in the process whether deposit bonds are accepted.
What happens if the off-the-plan project is delayed?
If the off-the-plan project is delayed, the applicant will need to apply for a new bond to replace the existing bond.
What documentation do I need to apply for a deposit bond for an off-the-plan property?
Applying for a deposit bond online with Deposit Power is easy and fast. Here are the documents you may need to provide:
A copy of the contract of sale for the purchase
Proof of financial capacity to complete the purchase
Council rates notice for existing properties owned
Latest loan statements for existing debts
For more information, please contact us.
Why choose Deposit Power Bonds?
If you can afford the property, we’ll cover the deposit.
Move Quickly
Avoid the hassle of selling other investments or rushing to gather a deposit.
Qualify Easily
With sufficient equity or capital, secure your digital bond online in just minutes.
Grow Your Savings
Keep your cash deposit earning for you in other investments until settlement.
No Upfront Fees
Pay only when your deposit bond is approved—no money trapped upfront.
Helpful Service
Our Sydney-based customer success team is here to assist, ensuring bond approval in minutes.
