What is Deposit Bond?
A deposit bond is a guarantee from an approved insurer that the deposit will be paid at settlement — used instead of a cash deposit at contract exchange. Your cash stays in offset or another investment until settlement day.
Why it matters for you
Useful when your deposit cash is tied up — in term deposits, super (via FHSS), another property settlement, or investments. Cost is usually 1–1.5% of deposit amount. Not every vendor accepts bonds; always check.
Last updated: April 2026