Know the facts before you start.

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The 10 Most Common Questions About Deposit Bonds Answered

So you’re thinking of getting a deposit bond? Whether you’re a first-time home buyer, downsizing or buying off the plan, chances are you have a few questions. After all, buying any property is a big decision – you need to know the facts before you start.

Don’t worry – we’ve got the answers you need. The more you know about deposit bonds, the better you can prepare for the process and the sooner you’ll get the key to your new home.

Here are some of the most common deposit bond questions answered:


You actually never pay us back unless there is a claim. Our role is to “guarantee” you for the deposit bond amount right up until you get the funds at settlement. In other words, our deposit bond tells the vendor that you’re good for the money.

Then, at settlement, you pay the full purchase price plus the deposit and any additional costs, like stamp duty. The only money that is exchanging hands is the deposit bond fee, which you pay to us upfront.


If settling under 6 months, the deposit bond one-off fee is 1.3% of the deposit amount required.  For any settlements over 6 months, the fee depends on the deposit bond amount and the required length of time. To get an instant quote please use our fee calculator.


The short answer is no! You only pay the one-off fee just before your deposit bond is released. That’s the brilliant thing about a deposit bond.


Faster than you think. Complete a quick referral form to our concierge team here. Once completed, you can expect a preapproval within 15 minutes. You will then receive your application form ready for eSigning with Docusign within 1 business hour. Once you return your signed application & payment of the bond fee, your deposit bond can be dispatched in less than 1 business hour!

Once approved, the deposit bond is released immediately. Copies of your unsigned deposit bond are issued straight away to all parties (conveyancer/solicitor on both sides, real estate agent, mortgage broker, and the purchasers).

Then, the signed deposit bond is sent via express overnight post to your nominated party – normally the purchaser’s solicitor or conveyancer. So, we can move as quickly as you can get us the documents we need.


Each case is different, however there are a few general rules:

✓  We can issue you a deposit bond if you hold formal finance approval or at least a conditional finance approval that is subject to valuation only.

 If you are selling a property and the funds from the sale is enough to purchase your new property outright,  you can also be eligible for a deposit bond.

 If you do not have finance approval from a bank or when a property settles over six months, we need to conduct an asset, income and liability assessment. To be eligible for a deposit bond, you or your guarantor will need to own a property with some equity,

To check if you are eligible, simply complete a quick concierge referral here, or call us on 1300 798 797 and our concierge team will put your mind at ease.


We know how difficult and frustrating it is for first homebuyers to get into the property market. The good news is a deposit bond can help. If you already have formal approval for your finance through a family guarantor loan and your property settles within six months, we can issue you a deposit bond on this basis. No need for your guarantor to also sign your deposit bond (phew!).

If settlement is greater than six months, or you don’t have finance approval, you will need a guarantor to apply with you for your deposit bond. We need you or your guarantor to have a property with the required equity to release a deposit bond. This is so we can ask your guarantor to pay back the deposit amount in the unlikely event of a claim on your bond.


In most cases, buying off the plan requires the deposit bond to be issued up to the “sunset clause” date. The sunset clause date is a provision in off-the-plan contracts that allows either the vendor or the purchaser to rescind the contract if the title to the property has not been created by a specific date.

You will find the sunset clause date in your contract of sale, or just ask your solicitor or conveyancer. While you’re there, look out for a separate clause in your contract relating to deposit bonds – some vendors may request to add additional time on a deposit bond.

Good news, if you can prove that settlement occurred earlier than 6 months from the expiry date of the deposit bond, a pro rata refund can be obtained. The maximum refund applicable is 18 months. Terms and Conditions apply.


Definitely. We recommend to always check with the real estate agent/ vendor to make sure they will accept a deposit bond instead of a cash deposit.


The idea behind a bank guarantee and deposit bond is the same: a bank guarantee is a guarantee from a lending institution ensuring the liabilities of a debtor will be met. In other words, if the debtor fails to settle a debt, the bank covers it. (definition by Investopedia)

But there are also some key differences that might impact which one you choose for your situation:

✓ Bank guarantees are secured – they require real estate or cash security to release.

Deposit bonds are unsecured – when we do an assessment of your eligibility to get a deposit bond in cases where you do not have finance approval, we are doing so just to ensure you have the required equity calculation to support a bond in the event of a claim.

Bank guarantees usually have higher set-up and ongoing costs compared to the one-off deposit bond fee.

Bank guarantees have more paperwork for set-up compared to the fact deposit bond application (especially when you use our concierge service!).

Deposit bonds are usually faster to obtain than a bank guarantee.


As a general rule, we need the following documents:

Contract of sale of the purchase property

Contract of sale for the sell property (if applicable)

Letter from your bank/lender for finance approval

Photo ID for all applicants

Where assessing on income and equity and settling under 6 months we will also need:

✓ Rates notices for property/s owned

✓ Liability statements for your home loan.

Ready to go? Got more questions?

Simply complete a quick concierge referral here.

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As a property-related service provider—whether you’re a mortgage broker, conveyancer, real estate agent or solicitor—it’s important to continuously improve the services you provide.

Having a toolkit that solves your clients’ major pain points ensures that you’re able to keep offering excellent service, boost customer loyalty, repeat business and referrals.

The fierce property market has only increased competition among buyers for homes, as prices continue to increase even incrementally as the market recovers, and it can be more of a challenge for property-related service providers to differentiate themselves. 

Service providers with a competitive advantage can help bridge the gap between a homebuyer and the property that’s suited to their needs.

For any property-related service provider, client trust is the core of any transaction. A deposit bond is an enabler of this trust; this starts the conversation about the steps that need to be taken for the homebuyer to attain the property they’re aiming for and allows service providers to build the relationship and dependability required to move forward.

By including deposit bonds in your professional toolkit, you can focus on your core competencies and develop additional value-adding services for your clients. 

What are deposit bonds?

A deposit bond is a great solution for homebuyers that are looking to purchase, but have cash locked away in equity in a property they have sold or intend to sell. 

A buyer or investor will normally have to provide a cash deposit, typically at 10% of the purchase price, when purchasing property or land. A deposit bond bridges this gap by allowing buyers to secure their home now, and then pay the deposit and the balance of the purchase prices at settlement when their funds will be available.

Deposit Assure Co-Founder and CEO Etienne Rizzo explains its mechanics with this analogy: “Think of your platinum credit card when you go to a bar. When you put down your card, the bar opens a tab for you so that you’re free to eat and drink. You consume now and pay later. 

“A deposit bond is quite similar. Even if you don’t have the cash deposit right now, you can put down a deposit bond so that it acts as a guarantee for the deposit when you buy a property. At settlement, you can pay for the deposit, including the balance of the purchase price, either from the sale of your existing property or from the finance you obtain.”

This means deposit bonds offer additional planning and financial options for homebuyers, without dealing with more interest, and the professionals can focus on providing great service.

3 reasons referring partners should add deposit bonds to their professional toolkit

Ultimately, when a referring partner involves a deposit bond in their ways of working, the benefits are increased loyalty, repeat business and referrals. This solution helps referring partners solve problems, and establish and maintain trust while providing homebuyers more time and leeway to acquire the funding required to secure their property.

We’ve shortlisted three additional reasons that referring partners need to consider adding deposit bonds to their professional toolkit.

  1. Deposit bonds solve big customer problems (and generate more referrals)

Deposit bonds can help you stay ahead of your competition by allowing you to diversify the solutions you already provide in related areas. It can encompass assisting with setting up utilities in new homes or providing quotes for general insurance and deposit bonds — not just home loans or conveyancing. 

It can also generate more referrals because it’s such an appealing solution for most buyers and investors. In the current market where property prices are so high, the majority of people will typically need to sell existing properties in order to buy. So, their hands are tied by the cash locked up as equity in the property that they have sold or intend to sell in the future.

This means they don’t have the required 10% cash deposit on hand to buy a new property. A deposit bond is a great solution that ensures they can make their purchase conveniently.
Instead of waiting for the ‘right timing,’ or when they’re no longer constrained by a lack of cash and risk missing out on the property that meets their needs perfectly, they can secure their prospective property and sort out barriers to cash access for their eventual deposit payment. Additional benefits of using a deposit bond for a service provider’s customers include:

  • Keeping cash close by instead of being allocated totally to one’s deposit
  • Being able to secure a property quickly when they don’t have access to a 10% cash deposit yet
  • Offering a cheaper and quicker alternative to borrowing money

The more problems a service provider can handle successfully, the more trust they can build with their customers, and the greater the chances they have of increasing their referrals.

2. Deposit bonds can be cost-effective for homebuyers

With increasing interest rate rises, the cost of borrowing money is also getting higher. Rates are projected to keep increasing as the Australian central bank aims to return inflation to target and will continue to employ restrictive policies in the interest of providing greater confidence that widespread price increases will return to target rates within a reasonable time.

This comes after the bank’s most aggressive tightening cycle in modern history, a hefty 400 base point increase starting May 2022, which was set to wrap up in June 2023. The risks of a more pronounced downturn in the economy persist as the RBA grapples with the balancing act of tamping down on price pressures and keeping the economy growing consistently.

RBA forecasts inflation is set to return to the top of its target range of 2-3% by mid-2025, as a substantial boost to minimum wages has led observers to project higher rates for longer.

All in all, for the foreseeable future it can cost a buyer or investor more to use their cash on hand than for them to utilise a deposit bond. In context, a deposit bond under six months can cost 1.3% of the deposit amount. But the current interest rate is approximately around 5.5 to 6%, which is what a homebuyer’s money may be offsetting in the mortgage account.

In particular, for longer settlements (which typically apply to off-the-plan properties), utilising cash for such a long period can cost more money in the long run. This is why a deposit bond can be a more financially viable option for buyers.

3. Deposit bonds are a quick and straightforward solution

As most people need to sell existing property to buy a new one, their cash is most likely locked up in equity, which can take more time for them to come up with that cash deposit. 

A deposit bond is a quick and simple solution for buyers that don’t have immediate access to their 10% cash deposit. Within a tight housing market, service providers are challenged to find ways for homebuyers to acquire the property they need; aside from supplying them with the convenience of their personalised service, their offer needs to adapt to varied situations.

An offer like a FLEXI Deposit Bond enables buyers to obtain a pre-approved deposit bond that can be used to bid at multiple auctions or to have at the ready when they finally secure a property. For the service provider, the FLEXI Deposit Bond enables them to help buyers settle and start the property exchange. By settlement, the bond has already completed its purpose.

The deposit bond is the first crucial step to your client’s property buying or investment journey when they don’t have that cash deposit on hand. When setting oneself apart from the sea of other property service providers, having a versatile tool on hand in the form of a deposit bond can boost buyer confidence, encourage repeat business and increase loyalty in their provider.

Property partners solve problems for their customers, and when faced with a unique challenge that leaves a service or loan provider stumped, deposit bonds can solve this problem in a quick and efficient way. Sign up as a referrer and we can be the missing piece in even the most unconventional property problems.

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Guest Post: by Jared Zak from Dott & Crossitt

Deposit bonds are being used increasingly in New South Wales and Queensland conveyancing transactions as an alternative to cash deposits.

A deposit bond is essentially a promise given by a highly-rated financial institution to pay a vendor a sum equal to ten percent (or occasionally five percent) of the purchase price in the event that the purchaser defaults at settlement. They are increasingly being offered as a substitute for a 10% cash deposit.

So for example, Terry wants to buy a property in Kellyville New South Wales for $1m with a 60 day settlement period. He doesn’t have enough money to pay the 10% deposit on exchange of contracts but he will have more than enough to pay that and the remainder of the purchase price at settlement when he refinances his property portfolio. A deposit bond is a guarantee by a company like Deposit Assure that if Terry defaults at settlement, the vendor will be paid a sum of $100,000 by the deposit bond issuer. Terry hands the deposit bond to the vendor with the signed contract to secure the property.

With so much of household wealth tied up in property, this is a convenient alternative to buyers having to liquidate property or other non-cash assets to pay a contractual deposit which is due sometimes months before settlement.

“The added benefit is that these products are probably a lot safer than cash deposit from a cyber-safety perspective”.

That is, professional cyber hacker sand scammers have recently been impersonating estate agents / conveyancers via email and giving fake payment instructions for payment of deposits. Millions have been lost in the last few years this way.

Deposit bonds avoid this risk by not requiring for large sums of cash to be transferred prior to settlement.

There a handful of deposit bond providers in the market but the provider that we have had the best experiences in dealing with are Deposit Assure.

If you’re interested in the possibility of using a deposit bond on your next transaction, please speak to your conveyancer who will be able to arrange one for you.

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As we’ve seen recently, when developers and builders go into liquidation, the danger for your customers is that their cash deposit could potentially be tied up for years as the liquidation plays out.


Even worse, their cash deposit could disappear – check out this recent news article here

So in the current market when you are acting for purchasers buying an unregistered property, give them the option of considering a smarter alternative to paying cash – deposit bonds.

REMEMBER – Vendors can only make a valid claim on the deposit bond, if the purchaser is in default. They cannot claim when they are in default.

This gives your customers peace of mind, knowing they won’t lose their cash deposit in the event the builder or developer goes into liquidation.

And when you need a deposit bond, make sure you go with the strength and protection of QBE Insurance (Australia) Ltd – the only deposit bond in the market place backed by an APRA regulated and S&P ‘A+’ rated insurer;


For any queries on this, or for any deposit bond enquiries, please reach out to Cath or Bella as follows: or 1300 798 797 (Option 1)

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Ever wondered where deposit bonds came from? Deposit bonds, also known as deposit guarantees, have been helping Australians buy houses for almost two decades. So how did it all begin?

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Ever wondered where deposit bonds came from? Deposit bonds, also known as deposit guarantees, have been helping Australians buy houses for almost two decades. So how did it all begin?

Here’s a brief look at the moments in time that created the deposit bonds, Australia knows today:

1989: Short-term deposit guarantees arrive

While Aussies are queuing for Nintendo’s Game Boy, swaying to Madonna’s Like A Prayer and reeling over the end of free university education, something big is about to shake up the property world. Deposit guarantees enter the Australian market, giving home buyers a smart alternative to a cash deposit.

1990s: Deposit guarantees take flight

Australia’s property market booms again after the stagnant eighties. Banks start accepting deposit guarantees as a faster, more streamlined process than the longer, more expensive ‘bridging finance’ offering.

February 2000: QBE Insurance (Australia) ltd. backs deposit bonds 

While Aussies are still nursing hangovers from the turn of the century, QBE starts underwriting deposit bonds. QBE itself has been around since 1886, when it started providing insurance against shipping and trading risks. Back then it was known as the North Queensland Insurance Company Ltd and had just one employee.

Today, QBE Insurance Group Limited is ranked as one of the world’s top 20 insurers, with a credit rating of ‘A+ Stable’. Its deposit bonds, like those provided by Deposit Assure, are the most widely accepted deposit bonds Australia-wide.

November 2000: Deposit bonds get stronger

At the end of the year, the credit strength of deposit bonds is enhanced when the Australian Prudential Regulatory Authority’s (APRA) monitoring powers are expanded to include General Insurers. APRA was already monitoring banks and life insurance companies. For the first time, General Insurers are placed on an equal assessment process and credit rating structure as licensed banks. This means the credit worthiness of bank guarantees and deposit bonds is on an equal footing. If a bank is rated A+ and the insurer A+, then both products have an equal credit status.

2001: Long-term deposit bonds arrive

House prices start to really take off in Australia, with an average annual increase of almost 15% from 2001 to 2003. This year also sees the long-term deposit bonds, Australia has been waiting for. For the first time, off the plan buyers can use deposit bonds instead of a cash deposit.  

2015: Deposit Assure launches

Entrepreneur Etienne Rizzo saw huge potential in Australia for a deposit bond provider with a difference. In 2015 he launched Deposit Assure with the simple mission to make it easier for people to buy property. Deposit Assure’s deposit bonds are backed by QBE Insurance (Australia) Ltd.

November 2017: New refund policy launched

Deposit Assure announces its new fee refund policy for long term deposit bonds. Under Deposit Assure’s new policy, buyers will be eligible for a pro rata refund of their premium, where their purchase settles more than 6 months before the expiry date on the deposit bond, up to a maximum value of 18 months. This has the potential to make a huge difference to off-the-plan buyers especially and makes long term deposit bonds a more attractive option.

The Future

We can’t predict what will happen in the Australian property market (sorry!). But one thing’s for sure – as the Australian property market evolves, so too will deposit bonds. Especially as companies like Deposit Assure and QBE continue to look for new ways to provide the types of deposit bonds, Australia needs.

Read more about how Deposit Assure started here.

Got more questions about deposit guarantees? This article answers the 10 most common questions.

You can also contact us – simply click on the button below, submit your email or phone number, and we’ll get back to you within one business hour!







What supporting documents do you need to get a deposit bond? Why do you need them? And how do you supply them? Find out everything you need to know about supporting documents in this guide.

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What supporting documents do you need to get a deposit bond? Why do you need them? And how do you supply them? Find out everything you need to know about supporting documents in this guide.

Contracts, Section 32s, financial statements, application forms; when you’re buying a property, you’ll quickly find yourself buried in paperwork. So, the last thing you want to worry about is what documents you need to dig out for a deposit bond.

Here’s the good news: if you have been looking at securing finance through a broker or bank, the documents you need are similar to what they have already asked for.

Read on for everything you need to know about supporting documents, plus handy checklists.


Here are 4 reasons we need supporting documents for a deposit bond:

#1 Fact checking: We need to verify what you told us during your concierge interview is correct.

#2. Checks and policies: Your documents help us make sure you pass our checks and policies for issuing a deposit bond.  

#3. Protect against fraud: Just like banks and lenders, we need to know you’re you. That’s why we ask for photo ID.

#4. Make sure you can secure the funds at settlement: The last thing we want is to issue a bond only for you to struggle to come up with the funds at settlement. It’s not good for you, vendor or anyone! Your supporting documents allow us to make sure you have every chance of securing finance or funds at settlement of your property. That’s why we might ask for proof of income, debts and liabilities.


Whilst every situation is different, there are some general rules around supporting documents. Here are the supporting documents normally required for two common scenarios:

#1 You’re settling within 6 months WITH proof of funds to complete

In this scenario, your proof of funds could be conditional approval (subject to valuation only), formal unconditional approval from a bank or lender, or proof of funds from the unconditional sale of your current property.

Therefore, we need to verify that you will unconditionally get the funds in time for settlement.

You need to provide:

  • Contract of sale for the purchase;
  • Photo ID for all applicants (e.g. passport or driver licence);
  • Finance approval letter (subject to valuation or unconditional);
  • If selling a property, unconditional sale contract/

Is this your situation? Download your own checklist here.

#2 You’re buying property or land WITHOUT proof of funds right now e.g. buying off-the-plan or at auction.

You do not yet have unconditional proof that you will have access to the funds to complete the sale at settlement. Therefore, we will need to conduct our own assessment of your income, home equity and liabilities.

We do this to verify that you will be able to secure finance at settlement, whether that’s 12, 24, 36 or 60 months from now.

You need to provide:

  • Contract of sale, including any special conditions, especially any relating to deposit bonds and the sunset clause date or registration date;
  • Photo ID for all applicants;
  • Proof of your income (last 2 payslips or last 2 years’ tax returns if self-employed);
  • Liability statements – mortgage, credit card, personal loan, credit card, car loan etc. Statements must be issued within the last 3 months.
Is this your situation? Download your own checklist here.


Supplying your documents has never been faster and easier than with Deposit Assure. We’ve launched a new system letting you can upload your documents directly to us.

How it works

#1 Get the link. Once you have spoken to our concierge team, they will assess your situation. If you are eligible for a bond, they will send you a link to your very own portal where you can view all the required supporting documents.

See image below of the client portal.


#2 UploadGather and upload all the relevant documents we have requested. See image below of the upload file option in the client portal.


#3. Download pre-filled application. Your deposit bond application has been pre-filled for you by our concierge team, using information from your concierge interview. That’s right – you don’t need to complete it yourself! Simply download the application from the portal, check, sign and upload.

#4. Finish. Once all documents have been uploaded, click “I’m finished”.

Then it’s over to us. We will review your documents and submit your application for formal approval. If any documents do not pass our verification, we will simply reject your document through the portal and you will be notified to upload a new one. Easy!


Our concierge team will help you at every stage of your deposit bond application, from go to whoa. No messy forms or paper work to fill out – our team will do it for you. It’s never been simpler to apply for a deposit bond. And the best part is our concierge service is completely free!

Interested in getting a deposit bond? Get started today. Download the relevant supporting documents checklist:

Buying and Selling checklist
Buying and Established Home checklist
Buying at Auction checklist
Buying Off-The-Plan checklist
Buying an Investment Property checklist
First Home Buyer checklist
Buying without Finance Approval checklist

If you have any questions about supporting documents, or anything else deposit bond related, get in touch.

How Deposit Bonds Can Help First Home Buyers + 3 Tips To Get Started Today 

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How Deposit Bonds Can Help First Home Buyers + 3 Tips To Get Started Today 

Are you a first homebuyer wondering how a deposit bond can help you? Not sure what to do next? Hold the phone – Deposit Assure’s co-founder Etienne Rizzo spoke to Anthony Alabakov at My Mortgage Freedom about how deposit bonds can help first homebuyers purchase property and tips on what happens next.

If you haven’t seen the MMF TV episode, you can watch it here.

For a quick recap, here are Etienne’s top tips on getting started today:


“Many first homebuyers have little more than the first home owners grant. You might have had that conversation with your mum and dad about a guarantee loan, which is a lot easier to strike. But once you get your loan, the next hurdle is asking your mum and dad to then help you with the deposit. Let’s say you’re buying a property for half a million, you’ve got to say,“ Mum, I also need $50,000”.

They might not have it available, so for a small premium (which you can work out using our fee calculator) we can issue a bond for first homebuyers for that 10%, which means that any cash they’ve saved they can keep. And mum and dad don’t have to fork out.”


“If you’ve decided on a deposit bond, the first thing to do is ask your real estate agent if they will accept a QBE-backed deposit bond. There’s no point getting down the track and then they say no. Get some help from your broker if you need it. We’re backed by QBE Insurance Pty Ltd and that gives assurance to many developers and real estate agents that, in the unlikely event of a claim, the bond will be honoured. So, we say tell homebuyers to focus on QBE Insurance in that conversation.

Next, talk to mum and dad. We’ve got fantastic blogs available that explain to mum and dad how it works (like this one), because obviously they are going to have some questions.”


“We’ve got a Concierge Service which we makes the application process extremely simply. We do an interview over the phone to establish if you can get a deposit bond. It takes just five minutes – we ask you some questions about yourself, we ask some questions about mum and dad (if they’re guarantors) and we can also do an interview with mum and dad. At the end of that process, we have an application form for yourselves and your parents as guarantors to sign. Then it’s pretty much issued within a business day.”

Got more questions? Get in touch with our concierge team today!

Click the button below and one of our concierge team will call you right back.




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There are a few differences between auction bonds and deposit bonds that matter. Choose the right one now and you could save time and hassle down the track – not to mention get ahead of the competition.

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For many homebuyers, deposit bonds are the missing piece required to secure their new property, so it pays to know the difference between different types of deposit bonds if you are going to unlock their potential.  

In this article, I’ll explain the difference between an auction bond and a deposit bond.

Both types allow the buyer to provide a guarantee for up to 10% of the purchase price to secure their new property or land purchase.

But there are a few differences between auction bonds and deposit bonds that matter. Choose the right one now and you could save time and hassle down the track – not to mention get ahead of the competition.

Let’s break it down.

First, know the basics.

There are similarities between both types of deposit bonds. Among them:

Both types provide a guarantee for up to 10% of the purchase price to secure a new property or land purchase.

With both, the purchaser only pays the deposit bond fee up-front – then at settlement, they pay the full purchase price plus the deposit and any costs (stamp duty etc.)

Both types are ideal if you don’t have access to the 10% cash deposit, e.g. buying and selling at the same time, downsizing, first-home buyers, investors and more.

But there are also important differences.

A deposit bond is ideal if your offer has been accepted. If you have already made an offer and know the 10% deposit amount required – this is when a deposit bond can be used.

An auction bond is like a blank cheque. It gives you the flexibility to be prepared to hand over a 10% on the day of auction – whatever that might be. You might not be successful with your first auction – but that’s okay because an auction bond can be valid for 3 or 6 months (depending on which is best). This means you can keep taking it to auctions until you place the winning bid! A deposit bond, on the other hand, needs to be valid up until the settlement date or sunset clause date if buying off the plan.

Auction or deposit bond: which should you choose?

To work out whether you need an auction bond or a deposit bond, ask yourself the following questions:

Are you planning to purchase in an auction market?

If you are planning on purchasing in an auction market, keep in mind that the winning bidder is typically required to pay up to a 10% cash deposit to secure the property. If you do not have ready access to a cash deposit, you can use an auction deposit bond to secure the property.

There are 4 big advantages to choosing an auction bond:

#1.   If your equity is locked up in your current home, an auction bond can help you secure the purchase property without the hassle of redrawing on your mortgage or taking out another loan. There’s no interest on an auction bond.

#2.   In most cases you may be selling your home, or intend to sell at a later date. So an auction bond makes sure you are ready to land that killer bid.

#3.   You can re-use the auction bond until you are successful. No need to apply again and again before each auction.

#4.   Once your bid is accepted, you can fill out the final purchase price and the vendor’s details, before handing over the final auction bond to secure your new purchase – all on the same day!

Have you made an offer on a property and is it accepted?

If you have made an offer on a property and it’s been accepted, there is no need to get an auction bond. Why? Because an auction bond is typically used when you have not yet had an offer accepted and you are unsure which property you will end up buying. So if your offer has already been accepted, a deposit bond can be issued based on the contract of sale and final price the purchaser has agreed with the real estate agent.

Sometimes a deposit bond is cheaper.

Depending on your situation, it may be cheaper for you to get a deposit bond. That’s because the bond is issued directly on a “known” property and you may already have formal finance approval, which may mean you can get the deposit bond for a slightly cheaper fee. But whichever you choose, remember there is no interest – just the one-off fee to the deposit bond provider. To compare costs, use Deposit Assure’s easy online fee calculator.


When to choose an auction bond:

#1. You are bidding at auction’;

#2. You are unsure which property you will end up buying’;

#3. You do not have cash readily available for the 10% required.

When to choose a deposit bond:

#1. You are not buying at auction but still need access to a deposit up to 10%;

#2. Your purchase offer has already been accepted – you simply need a deposit bond to complete the sale;

#3. You are buying in a private treaty or off-the-plan.


When using an auction bond, you can still secure the property pre or post auction – Once your offer is accepted. Simply fill out the details and hand in the auction bond.

Always consult the auctioneer or real estate agent to make sure they will accept a QBE-backed deposit bond on the day of auction.

The fee for a Deposit Assure auction bond is the same whether you choose 3 or 6 months, so choose a 6-month bond for added value!

If you are not successful, and you return the unused auction bond within 30 days of issue, you can get a full refund less $200 admin and processing fee. So there’s nothing to lose!

Want some help to choose between an auction bond or a deposit bond? 

Click the button below and one of our concierge team will call you right back.




From application to closing, we walk you through what you can expect during the deposit bond process.

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From application to closing, we walk you through what you can expect during the deposit bond process.

Buying a property is one of life’s most stressful events (over divorce and bankruptcy). So the last thing you want is the added hassle of wading through the unknown to get your deposit bond.

This checklist tells you exactly what to expect and how to prepare – you’ll be amazed how easy it is.

Follow our step-by-step DIY guide:

Tools needed: Phone, internet, pen, printer, champagne.

Time: Between 1 and 2 days.

Step 1: Work out if you need a deposit bond.

Before you apply for a deposit bond, take some time to work out whether it’s right for you. Think of a deposit bond as an IOU for the deposit amount you need to secure your property. It is a substitute for the cash deposit required between signing the contract of sale and settlement of a property. Just like a cash deposit, a deposit bond guarantees your commitment to an unconditional contract of sale. Then, at settlement, you simply pay the full purchase price, including the deposit bond amount.

What Is A Deposit Bond? Everything You Need To Know [Infographic]

Click here for to view your guide to deposit bonds (PDF Format)

There are lots of reasons why buyers may not have ready access to the 10% deposit required. Here are three of the most common reasons:

Reason #1. You are buying and selling at the same time, waiting on the funds from the sale.

Reason #2. You’re a property investor, leveraging the equity in your home, to buy an investment property.

Reason #3. You are a first homebuyer without enough cash sitting in the bank for the deposit. 

Whatever the reason, deposit bonds are the only option for a growing number of buyers, as they are both quick to obtain and cost-effective.

STEP 2. Check with your real estate agent and vendor whether they will accept a deposit bond.

Deposit bonds are becoming more and more acceptable as a way of paying your deposit, especially amongst developers. However, it’s always best to check. Most real estate agents and developers will only accept deposit bonds if they are backed by a AAA credit rated insurer. Lucky for you, Deposit Assure deposit bonds backed by QBE, which is as good as it gets.

STEP 3. Check your eligibility

You know you want a deposit bond, and you know it’s an acceptable form of payment, so now you need to find out if you are eligible. That’s where we come in.

Speak to one of our concierge officers who will assess and prequalify you within minutes. They will give you a quote for your deposit bond, so all you need to say is “go” for the application to proceed.

STEP 4. Gather your documents

Once you have agreed to the quote, your concierge office will start your application over the phone (it really is that easy!). You’ll need to gather a few supporting documents. The supporting documents you need depend on your application type, so they’ll tell you exactly what you need. Get a head start with this Supporting Document Checklist.

STEP 5. Sign and send your application

Next step is to grab a pen and sign your paperwork. Once you have autographed your application, email it back to the team at Deposit Assure. Depending on the type of application, we might also ask you to send your paperwork to us by snail mail. To save you the cost of a stamp, we’ll give you a reply paid address.

They will then review and officially approve your application – this happens just minutes after we receive all the supporting documents and paperwork. 

STEP 6. Pay for your deposit bond

You knew it was coming, didn’t you? We make it easy for you to pay your deposit bond fee. You can pay either by credit card or a direct bank transfer:

If you choose a direct EFT, Deposit Assure needs to wait for your funds to clear before releasing the deposit bond. Please keep this in mind for super urgent deposit bond applications.

If you choose credit card, enter your card details on the application form. The team will charge your card just before releasing your deposit bond.

Curious how much it will cost? It’s less than you think – use our quick deposit bond calculator.

STEP 7. Check your inbox

Once approved, you and all parties involved in the property purchase (e.g. conveyancer, solicitor, broker, real estate agent) will be notified by email. We will mail the original signed deposit bond on the same day to your nominated recipient, normally your solicitor or conveyancer.

STEP 8. Celebrate!

Pull out the champagne, relax and wait for settlement when you will receive all the funds to complete the purchase. Cheers!


#1. Do you need a deposit bond?

#2. Will your vendor / real estate agent accept a deposit bond?

#3. Are you eligible?

#4. Do you have all your supporting documents?

#5. Have you signed your application form?

#6. Have you sent your application form?

#7. Have you paid your deposit bond fee?

#8. Did you and your nominated recipient receive your deposit bond?

#9. Is the bubbly on ice ready for the celebration?

Want to talk through the deposit bond application process? Ready to speak to our team?

Click the button below and one of our concierge team will call you right back.




Are you buying off the plan? Read our how-to guide on getting a deposit bond for your off the plan purchase.

Deposit Assure are an Agent of QBE Insurance (Australia) Limited ABN 003 191 035