Upon settlement of the purchase, you, the purchaser, are still required to pay the full purchase price of the property, including the 10% deposit. The purpose of a deposit bond is not to pay the deposit but to guarantee to the vendor that it will be paid. If a purchaser reneges on the contract of sale and is still required to pay the deposit, the vendor can claim the money from the insurance company who issued the deposit bond. The insurance company will then recover the money from the purchaser.

Mortgage World Australia offers short term deposit bonds for settlement periods up to 6 months and long term deposit bonds for settlement periods between 6 and 48 months. Long term deposit bonds are generally used for the purchase of off the plan properties.

For more information on the deposit bonds we offer please read our frequently asked questions. If you would like to know the cost of a deposit bond please visit our quote page.