What is a Deposit Bond? Why would I want one?
Deposit bonds substitute for cash when you need a deposit for a property purchase
A ‘Deposit Bond’ acts as a substitute for cash and you can use the bond when you need to provide a deposit to a vendor in a sale contract or at auctions.
For a small fee (several hundred dollars normally), you and your lender agree a maximum amount that you can use as a deposit to buy and you don’t need to use your cash. The Deposit Bond works like a guarantee. It’s your lender’s way of saying ‘we’ll pay this deposit at settlement, instead of now’.