Deposit Bonds are KEY for First Time Property Buyers to unlock their Dream Home!
Deposit Bonds are an ideal financial tool for First Home Buyers when Government Grants, Loan Monies or Parental Gifts are only available for settlement – not to pay the 10% deposit required to exchange Contracts of Sale.
What is a Deposit Bond?
How to qualify for a Deposit Bond?
- Retain cash reserves
- Easy and fast to apply
- No ongoing fees and No fees on application
More cost effective than a bridging or personal loan.
Secure your home now. Don’t wait until you free up cash for a deposit.
Easy and Fast to apply with our digital forms and e-Sign.WHAT is a DEPOSIT BOND?
The greatest hurdle to home ownership can be raising the 10% Deposit needed to exchange Contracts of Sale securing both the Vendor and Purchaser commitment to sell and buy the particular property. Cash may not always be available which is when using a Deposit Bond being a financial guarantee is the ideal deposit solution.
A Deposit Bond is a financial guarantee of the deposit payable by a Purchaser to the Vendor when entering into a Contract of Sale to buy property.
- Issued for agreed deposit amount of up to 10% of the purchase price
- To settle the Purchaser must pay 100% of agreed contract price (plus property acquisition costs)
- Can be used at Auction or Private Treaty, for existing property, off-the-plan, house & land or vacant land
- Commonly used for property purchases with extended contract settlement terms
- Accepted Nationwide across all States and Territories
Calculate Deposit Bond Fee
Three or Six month finance backed deposit bond premium calculator
To use the calculator just enter the value of your property in the first box, The premium will automatically calculate for a 10% deposit bond.
If you require less than 10% just enter the amount for the Deposit Bond value.
"Without Formal Finance Approved" deposit bond premium calculator
To use the calculator just enter the value of your property in the first box, The premium will automatically calculate for a 10% deposit bond.
If you require less than 10% just enter the amount for the Deposit Bond value.
Ready to secure your dream home with a Deposit Bond or have more questions? Click below to contact our friendly team at Deposit Bond Australia to get started!
Talk to Deposit Bond AustraliaThe Advantage You Need in Competitive Real Estate Markets
Secure your Property Quicker
Deposit Bond Australia can have your Deposit Ready within 1-2 business days from receipt of the completed Bond Application enabling you to secure your dream property quickly.
Greater Flexibility
Deposit Bonds can be issued for any amount up to 10% of the agreed purchase price which also includes combination deposits (5% Deposit Bond + 5% Cash).
Cost Effective
No Application Fee. No on-going Charges. One fee payable on approval and prior to issue of the Deposit Bond.
Retain Financial Freedom
The unsecured nature of Deposit Bonds means that savings, lines of credit and other assets can be kept intact until settlement, while the option of Parental Guarantors means that you do not need to already own property to be eligible for longer term Deposit Bonds.
Secure your first property purchase quickly by using a Deposit Bond,
approved within 2 business days!
How to Qualify for a Deposit Bond?
As a leading provider of Deposit Bonds, we understand that every property buyer’s situation is unique. That’s why we’ve designed our eligibility criteria to be accessible and flexible, while ensuring that our clients have the financial capacity to secure their first home.
First Home Buyer’s can qualify for a Deposit Bond by proving capacity to settle 100% of the agreed purchase price plus relevant acquisition costs, this can be achieved in two ways: where finance for settlement monies has been formerly approved by a lender based on your genuine savings for guaranteed terms of 6 months or less, or supported by parental guarantee where guarantors must demonstrate adequate equity in current ownership of property.
All First Home Buyer applicants must be Australian citizens or hold permanent Australian residency status and must also be able to prove their independent ability to service all loan commitments including proof of First Home Buyer stamp duty exemptions and/or First Home Buyer Government Grants. The assessment of your financial position will be made on the date of your application, and is not based on future savings, earnings or asset acquisition.
Parent’s Willing to Support Your Dream Purchase?
Deposit Bonds are unsecured meaning no charge or mortgage is placed over a Parental Guarantors cash reserves or assets which retains their financial freedom, expediting and expanding their capacity to offer assistance.
Parental Guarantees are acceptable to support minimum equity requirements and to evidence balance of purchase monies including Guarantor’s proof of ownership in Australian property.
Get Started and Secure Your First Property!
As a First Home Buyer, purchasing your first property can be a daunting and complicated process. A Deposit Bond is KEY to simplifying the process and help you enter the property market sooner without the need to have access to a full cash deposit.
Get a Pre-approval now
A big thank you to Seanan and the team at QBE Deposit Bond for making the process so seamless and for their extremely speedy responses. We’ll now be moving into our new home, can’t thank them enough…amazing service!
Denise StabileMy partner & I are in the process of buying our first home and were not told we needed to get a deposit bond until the day of cooling off period ending. I spoke with the team at DBA who said they can help us but it will be a struggle due to lots of applications, needless to say we were stressed to the max getting all the docs, signing the forms etc and submitting it all within the hour, however Seanan was an absolute pleasure to deal with! She got everything done for us before end of day and explained everything clearly. I just cannot thank her and the team enough for their efforts to get this to us in such short time. Thank you so much for your professionalism and dedication!
Kayley BryantHave A Question?
We’re here to help! Our friendly staff are available to discuss your scenario and provide a fee quote Mon-Fri 9:30am-4:30pm. Simply complete the form below and we will contact you OR you can reach us via email or phone.
1800 266 388 (02) 9966 1044 (02) 9966 1320 admin@deposit.com.auCommon Questions about Deposit Bonds For First Home Buyers
First Home Buyers
First Home Buyers can qualify for Deposit Bonds in 1 of 2 situations:
- Finance for settlement monies have been formerly approved by a bank based on the purchasers’ genuine savings for guarantee terms < 6 months:
Download Checklist Download Application Form Supported by parental guarantee. Guarantors must demonstrate adequate equity in current ownership of property
How do deposit bonds work?
It’s easy! You may be ready to buy your property or already found the one you want. However, you may not have ready access to the full deposit you are required to pay upon signing of your contract of sale, the property may be under construction with a longer than normal settlement term, or your funds may be tied up as equity in other assets or longer term investments, such as shares. Whether you have immediate access to your deposit or not, there are several reasons why you may not be able to, or want to, use your own funds to pay your deposit. Quite simply a deposit bond is a form of a guarantee accepted by Vendors in lieu of a cash deposit. It defers the need to use your cash up front. At settlement you will be required to pay the full purchase price and any associated costs. For more information please refer to our Information Brochures under Downloads.
Who is Deposit Bond Australia?
Deposit Bond Australia Pty Ltd are authorised agents of QBE Insurance (Australia) Limited. QBE’s founding company was established in 1886 and has grown into an international insurance group operating from over 200 offices in 30 countries worldwide. Whether you’re buying a property to live in, or you’re an investor a Deposit Bond is the smart way to secure your purchase.
How much does it cost?
Deposit Bonds are a cost effective alternative to other forms of short term or bridging style loans. You pay an up front one off fee when the bond is issued and there are no ongoing fees or interest charges. To find out what your deposit bond will cost, please go to our Fee Calculator for an immediate quote.
Do I need to provide security for a deposit bond?
Deposit bonds are unsecured, which means assets, savings or lines of credit can be kept intact.
Do I need to already own Australian property in order to get a deposit bond?
In most cases yes. If you do not own property, we will accept spousal guarantees where the property asset is in the spouses name, or in the case of First Home Owners we will accept parental guarantees where the parents own property. Property ownership is not necessary where you have an unconditional loan approval from an acceptable lending institution, the term of the bond is six months or less and have proof of funds to complete the property purchase.
Can I get a deposit bond if I’m from overseas?
You are required to be an Australian Citizen or hold permanent Australian residency status in order to be eligible.
How long does it take to arrange a bond?
Once we have received your fully completed DBA Deposit Bond application and supporting information, deposit bonds are generally assessed and issued within 4-48 hours, depending on the complexity of the application.
What happens if I don’t settle on the property?
Should a Purchasers’ financial situation alter and as a result can no longer settle, the Vendor will become entitled to receive the deposit monies noted in the contact of sale. By the Vendor making a claim against the deposit bond it is “cashed in” via QBE making the appropriate payment to the Vendor, or stakeholder nominated in the contract of sale, within the timeframe specified on the bond.
The Purchaser is then required to reimburse QBE. If the Purchaser fails to do so, the Underwriter has the right to take legal action against the Purchaser for full recovery of the deposit bond value.
Target Market Determination
QBE’s Target Market Determination for the Deposit Bond product issued by Deposit Bond Australia Pty Ltd is available in the Information Brochures section under Downloads
What if I have a Complaint?
Deposit Bond Australia believes that it is essential to hear and respond appropriately to any complaints or disputes raised by our customers. Our Complaints Policy is available: DBA – Complaints Policy (QBE Deposit Bonds) and informs you how to make a complaint and the process involved in dealing with the complaint.
What if I have more questions?
Our friendly staff are available during normal business hours (EST) to talk to you about your needs. If you have any questions please contact us on our Freecall number 1800 266388.