What is a Deposit Bond?
A Deposit Bond is a substitute for all or part of the typical 10% cash deposit required between signing contracts and settlement.
Can a Deposit Bond be used at auctions?
Yes. A bond can be obtained prior to attending an auction. The bond amount is fixed but the property details are left blank, so you can attend a number of auctions and have a bond available for the deposit if successful. The vendor and the property details can be completed by you when your bid is successful.
Who can purchase a Deposit Bond?
A Deposit Bond can be purchased by existing property owners who wish to purchase another property, property investors who wish to expand their property portfolio and first home buyers. They are ideal for the "asset rich/cash poor" purchaser who has funds tied up in investments or in their home, and need to provide a deposit. They can also be used for purchasing off-the-plan property.
Where are Deposit Bonds accepted?
Deposit Bonds are legal and available in all states. It is recommended that you check with the vendor for acceptance prior to purchase.
How long is a Deposit Bond valid for?

The Deposit Bond expires when the contract of sale is completed, terminated, rescinded, or the expiry date occurs (ANZ Deposit Bonds have expiry dates of 3 months or 6 months), whichever happens first.

The Deposit Bond also expires when a claim is paid by the guarantor, QBE Insurance (Australia) Limited ABN 78 003 191 035.

Can you obtain a refund if the Deposit Bond is not used?
No. Once the premium is paid and the bond issued, a refund is not available.
What are the cost savings of a Deposit Bond?
The cost savings for an ANZ Deposit Bond are considerable. For example, if you were to apply for a 3-month, $30,000 ANZ Deposit Bond, you would incur only $315. Alternatively, bridging finance would cost approximately $975 (based on 1.5% application fee and 7% p.a. interest rate over a 3-month period). The ANZ Deposit Bond would save you $660.
What happens if I default under the terms of the contract of sale?
If the purchaser defaults under the contract of sale, the vendor is entitled to retain the deposit. The vendor can claim the guaranteed amount from QBE Insurance (Australia) Ltd.
QBE Insurance (Australia) Ltd will then seek recovery of the deposit amount plus costs from the purchaser.