Deposit Bond Quote Calculator

Bond details

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Is your property settling in less than six months?
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Guarantee fee

Tips for your situation


Enter in the details of the property that you are buying and the size of the deposit guarantee that you require and our calculator will provide you with a quote from several insurers.

For larger bonds, longer term purchases or unusual situations, please speak to our mortgage brokers by calling 1300 889 743 or filling in our free assessment form.

What is a deposit bond?

A deposit bond is a guarantee from an insurance company made to the seller of a property that you will complete the purchase. You can use it instead of paying a cash deposit when you buy a property.

In the unlikely event that you do not complete the purchase, the seller can claim on the deposit bond policy and be paid the amount of the guarantee.

  • You pay a once off insurance premium when your bond is issued.
  • The vendor (seller) is given the deposit bond as security when you sign the contract to buy the property.
  • There are short term bonds for less than six months and long term bonds for longer terms.
  • The bond cannot be for more than 10% of the contract price.

Would you like to apply for a deposit bond?

Speak to our mortgage brokers by calling 1300 889 743 or fill in our free assessment form to see what is available.

Short term guarantees

A short term deposit bond is for properties that are settling within six months. They have a simple approval process and are relatively cheap.

You’ll need to provide evidence of a pre-approval or formal home loan approval as well as the contract for the property that you are buying.

The insurer is relying on your ability to get finance to ensure that you complete the contract so they don’t require you to have a high asset position.

Auction bonds

If you are buying a property at auction then we can arrange an auction bond.

This is where we arrange a pre-approval for your home loan and a deposit bond with a maximum purchase price. You can then buy any property up to that maximum price.

You should check with the auctioneer beforehand to make sure that the bond is acceptable instead of a cash deposit.

Long term guarantees

Long term deposit guarantees are normally for off the plan properties that are settling within a couple of years. The maximum term is 5 years.

The insurer will normally require you to have significant equity in property, a large amount of cash or a significant shares to be able to qualify. If you don’t meet the equity requirements for a long term bond then we can often increase your home loan to pay for your deposit.

Before you buy a property off the plan you should read our tips page and also our guide on applying for a home loan for an off the plan property.

You can discuss your situation with us by calling 1300 889 743 or by filling in our free assessment form. We’ll let you know what options are available to you.

Getting the cheapest deposit bond

Very few people compare deposit bond premiums! There can be big differences between insurers so it pays to shop around.

Firstly, you need to know which providers can approve your bond. There isn’t much point applying for a bond and then getting knocked back.

Secondly, you can get premium quotes from several providers and apply with the cheapest one. This is something that our mortgage brokers can do for you free of charge.

Lastly, you can try asking the vendor if they will accept a 5% deposit instead of a 10% deposit! This can often halve the cost of the bond! Please note that this is often not accepted for off the plan purchases.

Comparing quotes

You shouldn’t just compare the cost of the premium. You should also consider:

  • Will the vendor accept a bond from that provider?
  • Can the bond be issued quickly?
  • What documents will they require?
  • Can you get approved for the deposit bond?

Should I get a deposit bond from my bank?

Most banks that offer deposit bonds are actually just re-branding the bond of an insurance company such as QBE or CBL Insurance Ltd.

  • ANZ deposit bond: Issued by QBE insurance.
  • WBC deposit protect bond: Issued by Westpac Banking Corporation.

There are also other providers such as Deposit Bond Australia (DBA), Aussie Bonds and Deposit Underwriters.

Which one is right for you? Call us on 1300 889 743 or fill in our free assessment form and we’ll find you the cheapest deposit bond.

Will the vendor accept a deposit bond?

Not all sellers will accept a deposit bond instead of a cash deposit.

It could be that their solicitor or conveyancer has told them that they are risky, which is not really the case. Or maybe they would like the deposit released to them early so that they can then buy another property.

Remember, no money is actually paid to the vendor as a deposit as the deposit bond is just a guarantee. Some vendors don’t understand how this works or some developers will not accept a bond for off the plan sales.

Does the bond protect me as the buyer?

No, a deposit bond is solely for the vendor, providing them security in the event that you do not complete the purchase.

If you are unable to complete the purchase then the vendor will claim on the deposit bond and the insurer will then seek to recover the amount of the guarantee from you.

  • Daisey

    I’m selling a property, and the buyer is telling that he’ll provide a deposit bond instead of the cash. Will there be any issue later on with the bond?

  • Hi Daisey,

    There shouldn’t be any issue with the deposit bond since it’s a guarantee from an insurance company that the buyer will complete the purchase and is used in lieu of the cash.

    Moreover, in any event if the buyer didn’t completed the purchase, you can claim the bond and you will be paid the amount of the guarantee. Also note that the bond amount can’t be more than 10% of the contract price.

  • Poninski

    This is a cool calculator and according to this, all is well but there’s one thing I’m worried about and that’s the location of the property. Do you have a guide or something on the locations that banks generally consider risky?

  • Hello Poninski,

    Thanks for you comment. You can check out our postcode calculator to find out how the banks will assess the location of your property. It also includes extra info on the matter and you can enquire online directly through the page if you want to discuss with a broker. Here’s the link to the calculator:

  • Jaxon

    Can I also have a look at any downloadable slides or any resources like that if you have them? I’m very much interested in dealing with you guys down the line and I’m sure my friends will be too.

  • Hi Jaxon,

    You can check out our resources section to find easy-to-understand guides, infographics and animations including various downloadable resources. Here’s the link:

  • Chsk

    How do mortgage brokers earn if we the clients don’t need to pay them? I’m not convinced about the services being free of charge..

  • Hi, the majority of our customers pay no fees for our services. This is because we’re paid by the banks for bringing in customers that would otherwise have been brought by their own staff members. However, there are situations where you’d need to pay some fees – situations such as if you’re borrowing for less than $200k, you have a very complex situation or you’re thinking of paying off the loan in less than 2 years.

    Please check out the “Our Fees” page if you’d like to find out about this in detail:

  • Brad

    I’m thinking of going for a 95% loan to buy a property in a Cat 3 location. Can this be done?

  • If you apply for a 95% mortgage in a Category 3 location, the lender may decide that this is too high a risk and therefore may request that you reduce your loan to 90% or 80% LVR. If this happens and you are unable to come up with a larger deposit, your mortgage application will be declined. However, some of our lenders do not have any postcode restrictions and will consider any location in Australia, allowing you to borrow up to 95% LVR. Please feel free to contact us if you’d like to discuss.

  • Mason

    I’ve got a pre-approval from Bankwest. I was thinking of getting a auction deposit bond but not sure of its validity. Can you advise me how long it’s valid for?

  • Hi Mason,
    It’s good that you have got pre-approved as it’s the basic requirement for processing an auction deposit bond. Usually, the bond is valid for 6 months from the date of issuance. Some banks offer their own deposit bond whilst there are also other providers such as Deposit Bond Australia (DBA), Deposit Power, Aussie Bonds and Deposit Underwriters. It is better to contact the bank to check which bond they accept and proceed accordingly.