Answers to your most common questions about Deposit Bonds

9 Most Common Questions About Deposit Bonds Answered

So, you’re thinking about getting a deposit bond?

Whether you’re a first home buyer, seasoned property investor, downsizing or buying off the plan, chances are you have a few questions.

Don’t worry – we’ve got the answers you need.

Here are the 10 most common deposit bond questions answered:

#1. When do I pay back the deposit?

You actually never “pay back the deposit” unless there is a claim. The role of a deposit bond is to “guarantee” you for the deposit amount right up until you get the funds at settlement. In other words, a deposit bond tells the vendor that you’re good for the money.

Then, at settlement, you pay the full purchase price plus the deposit and any additional costs, like stamp duty. The only money that is exchanging hands is the deposit bond fee, which you pay to the provider up-front.

#2. How much does a deposit bond cost?

It depends on the deposit bond amount and the required length of time. Talk to our team for a quote.

#3. Do I pay interest?

No – you only pay the one-off fee just before your deposit bond is released. That’s the brilliant thing about a deposit bond.  To get an instant quote for your deposit bond please click here.

#4. I am buying off the plan – how long does the deposit bond need to be made out for?

In most cases, buying off the plan means the deposit bond needs to be issued up to the “sunset clause” date. The sunset clause date is a provision in off-the-plan contracts that allows either the vendor or the purchaser to rescind the contract if the title to the property has not been created by a specific date.

Find the sunset clause date in your contract of sale or ask our team to help. While you’re there, look out for a separate clause in your contract relating to deposit bonds – some vendors may request to add additional time on a deposit bond.

If you can prove that settlement occurred earlier than 6 months from the expiry date of the deposit bond, a pro rata refund can be obtained. The maximum refund applicable is 18 months. Terms and Conditions do apply – refer to your deposit bond application or bond provider’s website, or ask our team for help.

#5. Do I need to seek approval from the vendor to use a deposit bond to secure my purchase?

Definitely. Always check with the real estate agent or directly with the vendor to make sure they will accept a deposit bond instead of a cash deposit.

#6. How quickly can a deposit bond be issued?

Much faster than you think. Within 15 minutes, we can help you get preapproval. Within one business hour, we can have your application form ready for e-signing. And, once you return your signed application with the bond fee payment, your deposit bond can be ready in less than one business hour!

#7. Am I eligible for a deposit bond?

Each scenario is different, but you are typically eligible if:

  • You hold formal finance approval, OR
  • You have at least got conditional finance approval that is subject to valuation only, OR
  • You are selling a property and funds from the sale are enough to purchase your new property outright.

If none of these apply, or when a property settles over six months, your deposit bond provider will need to conduct an asset, income and liability assessment. To be eligible, you or your guarantor will need to own a property with some equity.

The best way to check if you are eligible is to talk to our team.

#8. I am a first home buyer; can I get a deposit bond?

If you already have formal approval for your finance through a family guarantor loan, and your property settles within six months, you can typically obtain a deposit bond. The good news is there’s no need for your guarantor to also sign your deposit bond.

If settlement is more than six months or you don’t have finance approval, your guarantor will need to apply with you for your deposit bond. Your or your guarantor will need to have a property with the equity to release a deposit bond. This is to ensure the guarantor can pay back the deposit bond amount in the unlikely event of a claim on your bond.

#9. How do I obtain a deposit bond?

Obtaining a deposit bond is easy. Simply talk to our team. We will work with the deposit bond provider on your behalf, so you don’t need to add another thing to your list.

The supporting documents you need will depend on your application type, so we’ll tell you exactly what you need to provide. Then, when the application is ready, we’ll send it to you for electronic signing. It’s as easy as that!

Have you got some questions we haven’t answered here? Talk to our team at Conveyancing Services.

Property Grants available in 2018


The First Home Buyers Assistance scheme is a NSW Government initiative which provides exemptions or concessions on Stamp Duty for eligible NSW first home buyers. This includes vacant land on which you intend to build your first home.

First home buyers can apply to receive:-

  • Exemptions from stamp duty on new and existing homes up to $650,000
  • Concessions on  Stamp Duty for new and existing homes between $650,000 and $800,000
  • Eligible purchasers buying a vacant block of residential land to build their home on will pay no Stamp Duty on vacant land valued up to $350,000, and will receive concessions on duty for vacant land valued between $350,000 and $450,000.

To qualify for First Home Buyers Assistance, you must meet the criteria listed below:

  • The contract and the transfer must be for the purchase of the whole of the property.
  • All purchasers must be ‘eligible purchasers’.  An ‘eligible purchaser’ is a natural person (i.e. not a company or trust) at least 18 years of age who has not, and whose spouse/de facto has not:
    • at any time owned (either solely or with someone else) residential property in Australia other than property owned solely as trustee or executor
    • previously received an exemption or concession under First Home—New Home.
  • At least 1 eligible purchaser must occupy the home as their principal place of residence for a continuous period of 6 months, commencing within 12 months of completion of the agreement. (Where an eligible purchaser was a member of the permanent forces of the Australian Defence Force and all purchasers were enrolled on the NSW electoral roll, as at the transaction date, then all purchasers are exempt from the residence requirement).

First Home Owners Grant (New Homes)

First home buyers building a new property may be entitled to a $10,000 grant on homes worth up to $750,000.

First home buyers purchasing a brand new property worth up to $600,000 may be entitled to a $10,000 grant.

The criteria to be eligible for the First Home Owner Grant are:-

  • at least one buyer must be an Australian citizen or permanent resident
  • the agreement must be for the purchase of the whole property
  • you must be a natural person (not a company or trust)
  • you must be over 18
  • the home is a brand new home
  • you or your partner have not previously owned property in any form in Australia
  • at least one purchaser must occupy the home within 12 months and needs to live in the home for a continuous period of at least 6 months
  • you have not previously received a First Home Owners Grant in any State or Territory.


If you would like to know more about these benefits, please contact Revenue NSW or our office.


Ian Marler has been inducted as a Fellow into the Australian Institute of Conveyancers (AIC) and has also been awarded a Life Membership into the NSW Branch of the Institute for his tireless efforts and expertise in the Conveyancing industry.

Adamstown, NSW, March 8, 2018– Conveyancing Services is proud to announce that one of our founders, Mr Ian Marler, has been awarded both a Fellowship with the National Division of the Australian Institute of Conveyancers and a Life Membership with the NSW Division.  Ian started one of the first conveyancing firms in the Hunter region, Conveyancing Services, in Denison Street in 1986 and later moved to Adamstown and expanded to Maitland.  Ian was instrumental in having conveyancing recognized as a stand alone profession outside of solicitors and has long been well regarded in the industry.  Ian is one of only five people to receive a Fellowship with the AIC and the only one from Newcastle.

Natalie Mason, who began working with Conveyancing Services in 2001 and is now a Co-Owner of the business, says “Ian is an amazing conveyancer who is extremely generous with his knowledge and his time and we are incredibly grateful for his contribution to conveyancing.”

Ian is a very well respected gentleman in Newcastle and many industries and has vast knowledge which is he always willing and available to share with anyone seeking to further their own interest in conveyancing.  Ian is a Founding Member of the Australian Institute of Conveyancing, NSW Division, a Registered Surveyor and continues to be an asset to the local community with his services as a Justice of the Peace.

Kat Bell, who started at Conveyancing Services in 2010 and commenced studying for her conveyancing licence in 2011 says “Ian is a wonderful person who was part of the reason that I decided to aim for my conveyancing licence.  He was always available for any questions I had and continues to be an inspiration in my career and a great friend.”


Triple trophy win for Conveyancing Services

Triple trophy win for Conveyancing Services

Conveyancing Services have won three top awards in the last two months, one for each business partner and one for the company itself.

Natalie Mason was awarded ‘Business Woman of the Year’ at the Hunter Region Business Hub Awards in September, and Conveyancing Services were the winners of the ‘Professional Services Award’. Tony Morris then won the ‘President’s Award for best practice and professionalism’ at the Australian Institute of Conveyancers – NSW Division annual awards night in Sydney at the start of October. Tony has long been held in high regard within the Conveyancing profession and his win was acknowledgement of his exemplary career.

“We’re so excited to win these awards and so honoured that all our hard work has been recognised. We are really proud of our staff for their dedication and want to thank all of our wonderful clients” says co-owner Natalie Mason.

Natalie and Tony are co-owners of Conveyancing Services. Both business partners worked at the company before purchasing the business five years ago. They are both proud and humbled of how far Conveyancing Services has come.

Tony Morris has been part of Conveyancing Services since it opened in 1986. He has dedicated his professional life to making the complex issues involved in buying and selling property as simple and stress-free as possible for his clientele.

Natalie Mason has been part of the business for the last 17 years. She started in the office and obtained her conveyancing licence 10 years ago. She says one of the most satisfying aspects of the job is helping first home buyers to secure their first property.

Tony and Natalie are also committed to giving back to their community. To celebrate a milestone birthday for the business last year they decided to do 30 acts of kindness, incorporating staff and the local community. Conveyancing Services are also proud sponsors of the Westpac Rescue Helicopter.

Both Natalie and Tony are Licensed Conveyancers, Certified Practising Conveyancers and Justices of the Peace.

Conveyancing Services is a Hunter based company with offices in Adamstown and Maitland. They celebrated 30 years of business last year and offer Conveyancing, the process of transferring legal property title from one party to another, throughout New South Wales.

staff and bec awards

New First Home Buyer Benefits – The First Home Super Saver Scheme

It was announced in the 2017/18 Federal Budget that eligible first home purchasers will be able to use the advantages of super to save for their home deposit.

The First Home Super Saver Scheme

The Government is allowing first home buyers to make voluntary contributions into super in order to save for a home.

First Home Buyers will be allowed to contribute up to $15,000 per financial year and $30,000 (over two years) in total from 1 July 2017.

From 1 July 2018 First Home Buyers will be able to apply to withdraw any voluntary contributions that they have made to their super for a deposit on their first home. The maximum amount that can be released from super is $30,000.00 of personal contributions, plus an associated deemed earnings amount.

There are many benefits, one of which is that by making these contributions by salary sacrifice, it may allow people to generate savings using super’s concessional tax rates.
Any withdrawals from a super fund will be subject to approval from the Australian Tax Office and will be taxed at the relevant marginal tax rate, less a 30% tax offset.

Time to get saving for your first home!

Speak to your Super Fund or read more here