Partner Login
Buying property can move quickly – especially in competitive markets or at auction.
If your savings are tied up, you’re waiting on the sale of another property, or you simply want to keep your funds working for you until settlement, a Deposit Power deposit bond can help you secure your purchase sooner.
Our Deposit Power Customer Success Team answer the most common questions buyers ask – helping you plan and know what to expect when using a deposit bond.
Key takeaways
- You don’t always need cash upfront
A deposit bond can replace the cash deposit required at exchange. - A deposit bond is not a loan
There are no repayments or interest – just a one-off fee. - It helps solve timing challenges
Ideal if you’re waiting on funds or buying off-the-plan. - It’s widely accepted and secure
Deposit bonds are commonly accepted by vendors, real estate agents and solicitors across Australia.
How can I buy a house with no deposit?
It’s common… you’ve found the ideal property, but you don’t have the full cash deposit right now.
Many buyers are in this position because:
- You’re buying your first home and trying to save the cash deposit
- Your savings are tied up in investments or savings accounts
- You’re waiting for the sale and settlement of another property
- You want to keep your cash working for you
A Deposit Power deposit bond can help you secure your property now without using your money or having to free up equity before settlement.
Here’s how:
- A deposit bond can be issued for up to 10% of the purchase price
- When exchanging contracts, you provide the digital deposit bond to the vendor, instead of a cash deposit
- It acts as a legal financial guarantee, telling the vendor the full deposit amount will be paid at settlement
It’s a simple way to more forward quickly and secure your ideal property now – without needing your cash up front.
When do I pay the deposit bond fee?
The one-off Deposit Power deposit bond fee is paid when the bond is approved and issued, before you use it in a contract of sale.
There are no ongoing fees or interest charges.
How quickly can a deposit bond be approved?
Securing a deposit bond is quick and efficient.
- Get a quote (2 mins) and apply online (under 10 mins) with all the required documents.
- Receive your digital deposit bond approval to your phone with a secure QR code.
- Pay the one-off fee when you need the deposit. There’s no ongoing fees / interest
- Pay the full deposit directly at settlement.
For short term bonds 6 months and under, approval is received instantly online in most scenarios.
For long term bonds it may take a bit more time if we require any additional documents, but it can still be approved within 24 hours (not days).
What do I need before I apply for a deposit bond?
To help your application go smoothly and be approved quickly, it helps to have the following ready:
- Details of the property purchase
- Contract of sale (if available)
- Information about how the purchase will be funded (such as loan approval or sale proceeds)
- Identification and financial details
Learn more on how to qualify and apply for a deposit bond.
Is a deposit bond a loan?
No. A deposit bond is not a loan.
A deposit bond is provided digitally to the vendor for the 10% (or other agreed deposit amount up to 10%) of the purchase price at exchange.
It is simply a legal substitute for the cash deposit required when purchasing property.
Here’s how a deposit bond works differently:
| Typical client scenario | Using a deposit bond | |
| Arrangement |
A loan is a financial arrangement where a lender provides money to a borrower, who agrees to repay the amount over time with interest. |
A deposit bond functions as an ‘I owe you’ – it’s a guarantee that you will pay the full deposit amount for a property at settlement. |
| Cost | Incurs fees, ongoing interest or payments charges. | No money borrowed up front. You only pay a one-time fee when the bond is approved and issued. |
| At exchange | In most scenarios a client would pay 10% of the purchase price to the vendor using cash. | A deposit bond is provided to the vendor for the 10% (or other agreed deposit amount up to 10%) of the purchase price at exchange. |
| At settlement | You pay the remaining 90% (usually a combination of further cash and a loan) at settlement. | You pay the full 100% purchase price at settlement. |
A deposit bond simply allows buyers to secure a property now, giving them more time to organise their full finance requirements, liquidate assets and/or sell their existing property.
Learn how deposit bonds work.
How safe are deposit bonds?
Deposit Power bonds are “AA-” (Very Strong) rated from S&P – the same rating as the Big 4 banks in Australia.
They are legal financial guarantees and widely accepted.
If a valid claim is made because a buyer fails to settle, Deposit Power pays the vendor the deposit amount covered by the bond and then seeks reimbursement from your client.
Digital bonds include secure verification features, giving vendors and agents confidence in their authenticity.
Learn about the safety of deposit bonds and who underwrites Deposit Power.
Are deposit bonds accepted everywhere?
Deposit bonds are widely accepted by vendors, real estate agents and solicitors across Australia.
Deposit Power recommends confirming with the vendor or agent early in the process that they will accept a deposit bond before signing contracts.
Can a deposit bond be used at auction?
Yes – Deposit Power offers auction or house hunting bonds valid for up to 6 months, letting you bid confidently without cash in hand.
Here’s how:
- Confirm the vendor will accept a deposit bond
- Apply and be approved for a deposit bond before the auction
- Present the bond when you sign the contract
- Provide the signed contract to Deposit Power within 7 days
What happens if settlement is delayed? Can I extend my bond?
If settlement is delayed beyond the expiry of your bond, you may be able to apply for an extension, subject to approval and additional fees.
It’s important to contact Deposit Power as early as possible if you anticipate a delay. Our Customer Success Team will be ready to help on 1800 678 979 (8.30am – 5.00pm Monday to Friday.
What happens if I don’t need my deposit bond anymore, or don’t settle the purchase?
If for any reason you don’t complete the purchase and the vendor makes a valid claim on your deposit bond, Deposit Power will pay the deposit amount covered by the bond to the vendor.
Deposit Power will then seek recovery from you for that amount.
This is why it’s important to understand your obligations before using a deposit bond.
Learn more about how deposit bonds work or contact our Customer Success Team on 1800 678 979 (8.30am – 5.00pm Monday to Friday) if you have any questions.
Summary
If your goal is to buy a house with no deposit now, or have the power to keep you in control of your money, a deposit bond from Deposit Power can give you that flexibility.
- It’s a trusted, secure alternative to cash
- It’s not a loan
- It’s a simple one-off fee once approved for a deposit bond
And it can help you move quickly and confidently in a competitive property market.
