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As a broker, you’re constantly helping clients overcome timing, cash flow and confidence barriers when buying property.
One of the most common challenges? A client is approved for finance – but doesn’t have the cash deposit available right now.
That’s where deposit bonds come in.
Deposit Power deposit bonds are a simple, widely accepted substitute for a cash deposit. They give your business a point of difference, help you keep deals moving, strengthen your client relationships and offer practical solutions when timing matters.
Our Deposit Power experts have answered the most frequently asked questions from broker partners – and how to confidently position deposit bonds in your conversations.
Key takeaways
- A deposit bond is not a loan
It’s a guarantee used in place of a cash deposit – no interest, no repayments. - The fee is simple and upfront
Your client pays a one-off fee when the bond is issued – no ongoing costs. - Deposit bonds solve timing challenges
Ideal when funds are tied up, awaiting sale proceeds, or purchasing off-the-plan. - They’re widely accepted and secure
Digital deposit bonds are trusted by vendors, agents and solicitors across Australia.
Is a deposit bond considered a loan?
No. A deposit bond is not a loan.
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 deposoit bond | |
| Arragement |
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 your client will pay the full deposit amount for a property at settlement. |
| Cost | Incurs fees, ongoing interest or payments charges. | No money borrowed up front. The buyer pays a one-time fee only. |
| 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 | The client pays the remaining 90% (usually a combination of further cash and a loan) at settlement. | The client pays 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.
How quickly can a deposit bond be approved?
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).
How Securing a deposit bond is quick and efficient
- Get a quote (2 mins) and apply online (under 10 mins) with all the required documents.
- Your client receives their digital deposit bond approval to their phone with a secure QR code.
- Clients pay the one-off fee when you need the deposit. There’s no ongoing fees or interest
- Pay the full deposit directly at settlement.
Is a deposit bond application process complicated or time consuming?
Not at all – applying for a Deposit Power deposit bond is designed to be quick, simple and broker-friendly.
Through the Deposit Power Broker Hub, you can submit an application online in approximately 10 minutes. You can save an application and come back to it at a time that suits you.
Broker Erkan Mentesh from Finzoo says “insert quote from case study” about the Deposit Power online application process.
It helps to have these few details ready to ensure the application can be assessed quickly:
- 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
Once submitted, our team assesses the application promptly, and approval is typically instant for short-term bonds.
Long-term bonds may take a few hours if we need additional information. Either way, you’ll know exactly where you stand without a lengthy wait.
Approved bonds are issued straight to your client’s device – making it easy for them to provide the bond to the agent or solicitor without slowing down the transaction.
And if you ever need help with a scenario or application, Deposit Power’s BDM and Customer Support teams are here to guide you throughout the process.
Our goal is simple: to help you secure the deposit quickly, keep the deal moving, and make the experience easy for both you and your client.
When does my client pay the bond fee?
Your client pays the one-off Deposit Power bond fee when the bond is approved and issued – before it is used in a contract of sale.
There are:
It’s a simple, transparent cost, known upfront.
How safe are deposit bonds for clients
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.
How do I introduce and talk to deposit bonds to clients?
The most effective way to introduce deposit bonds is as a timing solution, not a finance product.
For example:
“If your savings are tied up or you’d prefer not to use your cash right now, a deposit bond could allow you to secure the property without paying the cash deposit upfront.”
Watch how Lead Broker David Newman, from Core Mortgage Broking, identifies the need for a deposit bond and introduces them to his clients <include David’s video or link to>
The key is positioning:
- It’s not extra debt
- It doesn’t replace their home loan
- It simply replaces the need for an upfront cash deposit or for you to have to free up equity
How do I talk to vendors, real estate agents and solicitors about accepting a deposit bond?
Most agents and solicitors are familiar with deposit bonds. If you do experience questions or resistance, here’s are some suggestions on how to position it clearly:
- It is a legal substitute for a cash deposit
- It protects the vendor in the same way a cash deposit does by guaranteeing they will receive the full deposit
- Deposit Power always encourages confirming acceptance with the vendor or agent before exchange – particularly for auction purchases
Can deposits be part-cash / part bond?
Yes. Vendors and buyers can agree to a combination of part cash and part deposit bond.
This flexibility can help:
- Bridge short cash gaps
- Strengthen negotiations
- Make a deal work where full cash isn’t immediately available
Key takeaways
Deposit bonds are a practical, flexible solution that can help you:
- Keep deals moving
- Solve timing issues
- Support clients without increasing their debt
- Strengthen your value as a strategic adviser
They’re not a loan. They’re not complex.
They’re simply a trusted substitute for a cash deposit.
When cash timing is the only barrier, a Deposit Power bond can be the difference between missing out – and securing the property.
GOT A SCENARIO? Speak to our expert BDM team <insert contact module>.
Download the complete Brokers guide to deposit bonds
Learn more <Link to Broker hub>