Share this post

What is a Deposit Bond?

A deposit bond is like a digital IOU instead of putting down cash when you buy a house.

A deposit bond is a digital certificate instead of a cash deposit. It guarantees your deposit and lets you pay later when you settle the property purchase.

The benefits of deposit bonds:

  • It’s just as good as cash.
  • You don’t need cash upfront.
  • It’s quick and easy.
  • You can make offers and buy without waiting to gather a cash deposit.
  • You buy now and pay the deposit later.
  • No extra fees or interest.
  • Reduces stress and worry.
  • You can use your cash for other investments

What it is:

  • A guarantee for your deposit
  • As secure as cash
  • Legitimate and trusted
  • Widely accepted

What it isn’t:

  • A home loan
  • A bank’s promise to pay
  • Costly
  • Full of complicated paperwork

How does a deposit bond work?

Once you have your deposit bond:

  • You can start looking for properties, make offers, and buy immediately.
  • You use the digital bond to secure the property, just like cash.
  • You only pay the deposit once the property purchase is settled, and then it’s all yours.

Deposit bonds can be used for:

  • Buying at auction or through private sale
  • Deposits up to 10% of the property price
  • Settlement terms up to 5.5 years

Who can use deposit bonds?

  • Buyers
    Act quickly even if you don’t have the deposit. A deposit bond gives you buying power.
  • First Home Buyers
    Get into the market without paying a deposit upfront.
  • Investors
    Your money isn’t tied up in a deposit, so you can invest it elsewhere.
  • Sellers
    Deposit bonds protect your deposit, and you still get it if the deal falls through.
  • Off the Plan Purchasers
    Deposit bonds cover any delays, so you’re not stuck with a cash deposit.
  • Commercial Buyers
    Buy commercial property without tying up your cash.

Ready to find out more?

Contact our team to find out if a deposit bond is the right option for you and get started today.

Related Post

APRIL 3, 2024

Discover Financial Freedom...

Are you drowning in a sea of multiple debts, struggling to keep your head above water...

MARCH 11, 2024

Australian Property Market:...

The Australian property market continues its upward trajectory in 2024, bringing both...

DECEMBER 6, 2023

What is the Shared Equity...

Dreamed of owning your own home but just don’t have the means to do it on your own? A...

NOVEMBER 2, 2023

Silly Season Spending to...

New year, fresh start – well, not exactly when it comes to lenders. If you’re looking...

OCTOBER 3, 2023

How will the NSW Budget...

Treasurer Daniel Mookhey says the Minns government’s first budget includes $13...


Eight ways to spring clean...

We often associate Spring with renewal, fresh beginnings and cleaning and decluttering at...