A deposit bond is a certificate that can be used in place of the property cash deposit. It acts as a guarantee of the deposit payment and allows the purchase to delay the payment of the cash deposit until settlement.
Purchasers can use deposit bonds instead of the cash deposit required to secure the property they want to buy. Then at settlement, the purchaser simply pays the full purchase price of the property.
Deposit bonds are also known as deposit guarantees.
Deposit Bonds are widely accepted and trusted throughout Australia as a means of securing a property purchase. They are legal in every state and territory across Australia and can be issued for all or part of the deposit amount required, up to 10% of the purchase price.
Deposit Power deposit bonds can be used to secure most types of properties with settlement terms to match the purchaser's needs. Most property purchases settle within 6 months or sooner but, there are many other situations that require a longer settlement term such as properties under construction and off-the-plan purchases.
Deposit bonds are economical with only a one-off fee required. There are no application fees, ongoing fees or interest charges. The fee varies depending on the term of the deposit bond and the amount required.
The fee for a short term deposit bond is only 1.3% of the deposit bond amount. So, the fee for a deposit bond of $50,000 will only be $650.
It is easy to get a deposit bond. You can start by clicking on the 'Get a Quote' button below
to secure your property with a deposit bond
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Deposit bond issued
Once a referral is submitted, Deposit Power will contact the customer directly to facilitate the Deposit Guarantee.