Deposit Bonds

... your alternative cash deposits

What Are Deposit Bonds?

Deposit Bonds are used in place of the cash deposit the purchaser needs to pay when they sign a contract of sale. It acts as a guarantee of the deposit payment. At settlement, the purchaser simply pays the full purchase price including the deposit.

Deposit Bonds are also known as Deposit Guarantee.

They are widely accepted and trusted throughout Australia as a means of securing a property purchase. In fact, Deposit Power has helped over one million buyers and sellers in the property sale process. They are legal in every state and territory across Australia. It 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 issued to purchase most types of properties with settlement terms to match the needs of the purchaser. 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.

Why use deposit bond?


You might be ready to buy don't have your cash deposit readily available. Your cash might be tied up in a fixed-term deposit or other investments like shares. Or you might be in the process of selling your home and need to wait for the money from the sale to buy your new property. Or you might be waiting on a gift from family or an applicable government grant to make up the deposit amount.

You can get a Deposit Bond quickly & easily and it can be used instead of a cash deposit to secure your property.

Savings time and money

If you are selling and buying at the same time, instead of applying for a bridging loan and waiting weeks for the loan to be approved, you can get a Deposit Bond fast. There is a one-off fee (with no ongoing fees or interest charges) and it often works out more economical than the fee for a bridging loan.

Who uses Deposit Bonds?

All property buyers can use Deposit Bonds!

Deposit Power Bonds are used where people are buying and selling at the same time, buying their first home or investment property.

Deposit Power Bonds are great for buying at auction or private treaty and can be issued to:




Self-Managed Super Funds

Use a Deposit Power Bond to help your customers:


Buy existing property, investment property or first home


Buy and sell at the same time, upsizing or downsizing


Buy off-the-plan or a house and land package


Buy vacant land


Invest in a commercial property or buy new premises for your business


Buy with Self-Managed Super Fund or Trust Waiting for a gift from family or a government grant

How does Deposit Bonds work?

getting a Deposit Bond is quick & easy.

Buying at Auction

Auctions are a popular way of marketing a property for sale.

If you plan on using a Deposit Bond at auction, you will need to apply for it prior to the auction. On the day of the auction, bring the Deposit Bond certificate along to the auction. When you secure the winning bid, simply complete the details of the purchase on the Deposit Bond certificate & hand it over to the real estate agent (instead of a cash deposit) to secure the property.

Often buyers might have to attend and bid at a few auctions before being successful. Rest assured that if you are unsuccessful at the first auction, you can use the Deposit Bond certificate at the next auction and hopefully, you will be the successful bidder then!

Buying by Offer & Acceptance / Private Treaty

If you have found a property to buy and the seller has agreed on the price, you will have to sign a copy of the contract of sale (or offer & acceptance) and place a deposit (usually up to 10% of the property purchase price) with the real estate agent.

At this time, you simply apply for a Deposit Bond. The application process is quick and easy and you will get a response immediately when you apply online. All you need to do is hand over the Deposit Bond certificate (instead of the cash deposit) to secure the property.

Finalising the purchase

Prior to settlement (the ownership changing names to yours), your legal representative will advise the amount you need to pay to the seller. At this point, you will have to pay the full purchase price, including the deposit amount. Your legal representative will give you a detailed itemised break down of the costs involved.

MAILING ADDRESS: GPO Box 2586 Sydney, NSW 2001. TRADING ADDRESS: Level 8/50 Clarence St, Sydney NSW 2000 Deposit Power is the registered Trademark of DP Bonds Pty Ltd.