BEST PRACTICEBrand EditorialElite Agent

Deposit Guaranteed

AS THE PROPERTY MARKET in Australia continues to make headlines, Deposit Power makes purchasing property more accessible to home-buyers. Deposit Power provides a flexible solution that can help home-buyers secure their dream home. We spoke to General Manager Keith Levy to find out more.

Firstly, what is a Deposit Power Guarantee and how does it differ from a deposit bond?
The short answer is that a deposit guarantee acts in exactly the same way a deposit bond does. A Deposit Power Guarantee simply takes the place of the cash deposit required when purchasing a property. A guarantee certificate is produced and held by the deposit holder until settlement. At settlement the purchaser pays the full purchase price, including the deposit amount, to complete the purchase.

Does this make it easier for agents to close a sale?
Deposit Power Guarantees are designed specifically to make home buying possible for those purchasers who don’t have ready access to a cash deposit. This means that more potential home-buyers are in the market at any time and the highest possible price can be obtained for the seller. Deposit Power Guarantees are also often used by purchasers who do have the ability to provide a cash deposit, but choose to use the product because of its convenience, flexibility and cost effectiveness.

For sellers, acceptance of a Deposit Power Guarantee in lieu of a cash deposit can often mean selling a property for the maximum possible price, as it brings more potential buyers to the market. It also means a seller does not have to settle for a deposit less than 10 per cent of the purchase price, protecting their interests and their ability to pay the agent’s fees should the purchaser default.

As all applicants have to meet our approval criteria before they are issued a deposit guarantee, buyers using a Deposit Power Guarantee have been pre-qualified by us. They are serious buyers with the financial capability to settle.

Deposit Power Guarantees can often be issued within moments of applying through our online application system. They are approved by Deposit Power or our network of financial, legal and real estate professionals.

More and more agencies are seeing the potential value of deposit guarantees as a valuable tool to close sales and even attract new listings, as they can bring more qualified purchasers into the mix with a guaranteed 10 per cent deposit.

How does this benefit home-buyers?
Every customer’s situation is different; however, the most common reason why a buyer will need a deposit guarantee is that they don’t have ready access to a cash deposit. They may find themselves in a situation where they are buying and selling simultaneously, or have funds tied up in shares or other investments. A classic example is first-home buyers who do not have the full deposit in cash immediately available and may be waiting for a government grant or gift from their parents, or investors who would rather keep their available cash untouched until settlement.

Deposit Power Guarantees simplify the buying and selling process for both parties. For sellers it offers a safe alternative to securing a quick sale, particularly in situations where they are looking to buy and sell at the same time. For purchasers it provides a convenient way of attaining a deposit without needing to explore costly, time-consuming options such as selling shares or arranging an equity release from an existing property.

How does the process work?
The process for purchasers differs slightly depending on whether you’re intending to buy at auction or make an offer on a property. However, regardless of the buyer’s situation, all Deposit Power Guarantees can be issued for up to 10 per cent of the purchase price.

For clients wishing to purchase at auction, guarantees are issued for a six-month term for up to 10 per cent of the buyer’s maximum bid and ability to settle. The six-month term offers buyers flexibility to attend multiple auctions or make an offer with the same Deposit Guarantee.

More commonly, if a buyer is looking to make an offer through private treaty, the Deposit Power Guarantee is issued for any amount up to 10 per cent of the negotiated purchase price.

Can the deposit guarantee be used to purchase commercial property?
Yes! The Deposit Power Guarantee is ideal for commercial properties, including individual factory units, retail and office space, vacant land and general business premises. These properties can be purchased by individuals, companies, trusts or self-managed super funds.

Are there any hidden fees?
The one-off fee is paid before the guarantee is issued. The fee is calculated based on the amount and term of guarantee required. Our Fee Calculator at provides a free, transparent quote, tailored to each client’s specific deposit requirements. If for whatever reason the original unused guarantee is returned to Deposit Power within 30 days of the issue date we will provide a refund, less an administration fee.

What is next for Deposit Power?
Over the next 12 months, Deposit Power is focusing on investing in new technology to aid in the accessibility of the product to more home-buyers, expand our range even further and take our service to the next level. We have refreshed our branding, launched a new website and a new mobile app is in the making, which will simplify the approval process even further. The app and website will feature a range of calculators we have developed, allowing customers to determine the costs of buying a property and project future repayment commitments in a range of scenarios.

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