DEPOSIT BONDS


Secure your property dream with a deposit bond

MortgageDirect can arrange deposit bond that can secure your property while you finalise your deposit funds


Purchase a home or investment property without having to provide the deposit in cash. With the use of a deposit bond you simply pay the full purchase price at settlement.

Both short and long-term guarantees are offered to suit any settlement terms.

And we can provide a bond for you to buy at auction.

Just talk to us.

A deposit bond is a guarantee to pay your seller the deposit.

Often, borrowers will not have access to deposit funds until after settlement (when the loan funds from the lender are provided). MortgageDirect can arrange a deposit bond for you to allow you to exchange on a property now or at auction. And even for “off the plan” purchases.

Deposit Bonds - Matt Brew Architecture Exterior Night

How does a deposit bond work?

Take a $500,000 real estate purchase where a 10% deposit is required. If using cash, you would pay $50,000 deposit on exchange and the remaining $450,000 at settlement. If you fail to settle on the Contract of Sale, the vendor has the right to withhold your $50,000 deposit.

If using a deposit bond, you pay a premium upfront and pay the full purchase price, $500,000 at settlement. At settlement, the deposit bond is no longer required and becomes null and void. If you fail to settle, the vendor presents the deposit bond to the insurance company that issued it for payment. The customer would then need to pay the insurance company the $50,000.

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