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Deposit bond solutions for off-the-plan purchases

Ready for your
next purchase?

Buy now. Keep your cash working.
Settle when your property is ready.

About Prime Bonds

Secure your property without tying up your cash

When buying off-the-plan, buyers are often required to pay a 10% deposit years before their property is completed. Prime Bonds offers a simpler alternative — use a deposit bond to secure the property while keeping your money available until settlement.

A Simple Alternative

What is a Deposit Bond?

A deposit bond is a guarantee used in place of a traditional cash deposit. It allows you to exchange contracts and secure your property today, while paying the full purchase price when your property settles.

No cash deposit is paid upfront.

Prime Bonds Deposit Bonds are...

Issued by an established Australian provider
Backed by institutional insurers
Widely accepted by developers, solicitors and conveyancers

This is a well-established solution used across thousands of off-the-plan property purchases.

The Concept

Keeping your money working

It’s not about affordability. It’s about timing, flexibility and control. Compare using a cash deposit versus a deposit bond.

Cash Deposit

10%

Money is locked away.

vs
Smart Choice

Deposit Bond

0%

Pay a fee. Keep your money available in savings, offset, or investments.

01

Why Buyers Use Prime Bonds

Commonly used by buyers who:

  • Have funds tied up in property/investments
  • Want flexibility during construction
  • Avoid bridging finance
Check Eligibility
02

Key Benefits

Secure your property without paying a cash deposit upfront.

  • Keep cash available for offsets
  • Avoid selling earlier than planned
  • Exchange contracts with confidence
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The Process

How It Works

01

Choose Property

Choose your off-the-plan property.

02

Assessment

We assess your eligibility for a deposit bond.

03

Bond Issued

Your deposit bond is issued.

04

Exchange

You exchange contracts and settle when ready.

Cost & Examples

Indicative Scenarios

The following examples are indicative only. Pricing is based on an approximate 3% p.a. bond rate.

Long-term Bond

24 Months

Purchase Price$900,000
Deposit (10%)$90,000
Indicative Cost
Bond Cost~$5,400
Establishment Fee$1,100 + GST
Total Indicative ~$6,610+GST

What this means for you

  • $90,000 remains available during construction

  • Cash can stay in savings, offset or investments

  • No need to commit funds years in advance

Short-term Bond

Up to 6 Months

Purchase Price$1,200,000
Deposit (10%)$120,000
Indicative Cost
Bond Cost~$1,800
Establishment FeeNil
Total Indicative ~$1,800Flat

What this means for you

  • Secure property without waiting for a sale

  • $120,000 cash preserved during interim

  • No short-term deposit pressure

Long-term Bond

48 Months

Purchase Price$5,000,000
Deposit (10%)$500,000
Indicative Cost
Bond Cost~$60,000
Establishment Fee$1,100 + GST
Total Indicative ~$61,100+GST

What this means for you

  • $500,000 preserved for four years

  • Greater flexibility for investment and planning

  • Exchange without long-term capital lock-up

Common Questions

01

What is a deposit bond?

A deposit bond is a financial guarantee issued by an insurer that replaces the cash deposit normally required when buying property. It allows you to secure a property without paying the deposit upfront; the full purchase price is then paid at settlement.

02

Is a deposit bond the same as a loan?

No. A deposit bond is not a loan and does not accrue interest. It is a one-off fee for a guarantee. Additionally, it does not impact your borrowing capacity for a home loan, as your funds remain available until settlement.

03

Who issues them and are they accepted?

Bonds are issued by authorised insurers and are widely accepted by developers, vendors, solicitors, and conveyancers across Australia, particularly for off-the-plan purchases.

04

Who can apply and what support is needed?

Suitable for buyers with assets/equity (investors, upsizers, off-the-plan buyers) who want to keep capital working. Eligibility is assessed on property equity, cash savings, investments, superannuation, or guarantor support.

05

How long does approval take and what are the terms?

Once documents are provided, approval typically takes 24 hours. Bonds can be short-term or long-term (multiple years). If settlement occurs early, the bond expires; if it fails and the vendor is entitled to the deposit, the insurer pays the vendor and seeks recovery from you.

06

Why use Prime Bonds and what is the cost?

Prime Bonds works directly with developers for faster approvals and seamless coordination. There is a one-off fee based on the bond amount and term, with no ongoing interest. Contact us for an initial assessment if you're unsure.

NEXT STEPS

Secure your off-the-plan
property with confidence

To see if a deposit bond is suitable for your purchase, speak with your agent or the Prime Bonds team.

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