With more Australians building or buying off-the-plan and the property market buzzing, it’s no surprise that Deposit Power Bonds are making headlines
So, what makes Deposit Power Bonds the smart choice for buyers—especially first-home buyers and those facing long settlement times? Here’s what you need to know.
A Deposit Power Bond is an alternative to a cash deposit when you’re purchasing property. Instead of tying up tens or even hundreds of thousands in a cash deposit—sometimes for two years or more (if you’re buying off-the-plan)—you pay a one-off fee and use a deposit bond as a guarantee to the seller. The full purchase price is paid at settlement, just like with a traditional deposit.
1.Keep Your Cash Working for You
Locking up a 10% deposit for years isn’t ideal—especially if you’re waiting on a build or a long-term settlement. With a deposit bond, you can invest that cash elsewhere, keep it in an offset account, or simply avoid the stress of moving money around before you’re ready. If you’re an investor or a first-home buyer with family support, your money is free to work for you right up to settlement.
2.Protection if the Builder or Developer Fails
One of the biggest risks for buyers in a changing property market is the possibility of the builder or developer going bust. If that happens, your hard earned cash deposit will likely be lost. With a deposit bond, your money stays safely under your control—giving you peace of mind.
3.The Strongest Deposit Bond in Australia
We’re proud to offer Deposit Power Bonds the strongest rated bond rated AA- (Very Strong) credit rating by S&P Global. This is the highest credit rating for deposit bonds in the Australian market—meaning security you can count on, whether you’re a first-home buyer, an upgrader, or an investor.
Secure Without the Cash: If you’re selling an asset or waiting on funds, a short-term deposit bond lets you secure a purchase now.
Perfect for Auctions: Don’t want to risk cash at auction? Use a bond—and if you don’t win, you can reuse it for another auction (up to your approved amount) without reapplying.*
*Check with the selling agent that a deposit bond is acceptable to the vendor.
Don’t Miss Out: Upgrade to your dream home without waiting for your current sale to settle. Use a deposit bond now and pay at settlement.
Bridge the Waiting Game: If you’re waiting on probate or a legal settlement, use a deposit bond to secure your next property now, not months down the track.
Protect Family Cashflow: Parents helping their kids? Keep your offset account working at high interest and just pay a one-off bond fee rather than moving large sums early.
We also offer a “House Hunting Bond”—ideal for buyers heading to multiple open homes and auctions. Get pre-approved for your maximum budget (for example, a $1M purchase = $100K bond) and use the same bond for multiple auctions. There’s no obligation or charge unless you activate the bond and win.
Flexibility: Long-term, short-term, auctions, off-the-plan, upgrades—bonds to suit any property purchase
Risk Management: Cash stays safe even if the builder or developer fails
Keep Your Money Working: Invest or offset your cash until settlement
Ready to get started or want to know more?
Contact the team at Mates Rates Mortgage Brokers today. We’ll show you how a Deposit Power Bond could help you buy smarter, invest better, and keep your cash protected.
