What is a Deposit Bond?

A Deposit Bond (also known as a Deposit Guarantee) is a quick, easy and low cost alternative to a cash deposit when buying property. It acts as a substitute for the cash deposit required by the purchaser and can be issued for all or part of the deposit amount, from 1% up to 10% of the purchase price.

Commonly accepted nationwide, Deposit Bonds are a great way for securing the deposit on your new home or investment property.

Buying a Home

Deposit Bonds are a great alternative to a cash deposit when:

  • Buying a property at auction: A Deposit Bond is an efficient solution and a much better alternative than having to set aside a lump sum of cash every time you attend an auction
  • Your equity is tied up in your current property: A Deposit Bond is useful when your funds are tied up in selling and buying a property at the same time, or when your equity is stuck in your existing property and you are looking to:
    • Upsize to a larger property
    • Downsize your existing property
    • Buy your next property off-the-plan
    • Buy an investment property
    • First home buyer

First Homebuyers

A Deposit Bond is a perfect alternative when buying your first home but do not have access to the full cash deposit when entering into a purchasing contract. A Deposit Bond can also assist those who cannot access their government grant, due to it not being available until after settlement.

Investment Property Buyers

A Deposit Bond can be used to purchase both residential and commercial property. A Deposit Bond is a useful tool for investors who want to defer the payment of their cash deposit, particularly when your LVR is between 70% to 100%.

New Home & Land Buyers

A Deposit Bond can be used as a substitute for your cash deposit when purchasing a new home including registered or unregistered land packages.


Commercial Property Buyers

Commercial or business properties such as units, retail, office, storage space, commercially zoned vacant land, individual factory units or general business premises can be bought using a Deposit Bond.

Self-Managed Super Funds (SMSF)

Self-Managed Super Funds can use Deposit Bonds to purchase investment property.