Deposit Power

Short Term Guarantee

Found the perfect property and need a deposit now?

When you have found the right property and need a deposit to secure the purchase, Deposit Power can help by providing a deposit guarantee.

A Deposit Power Guarantee is a substitute for the cash deposit required when purchasing a residential property and can be issued for all or part of the deposit required, up to 10% of the purchase price. This means when you are purchasing a residential property, you do not have to pay the deposit in cash when the contracts are signed, you simply pay the full purchase price at settlement.

So, as long as you have the funds available at settlement, with Deposit Power you are in the position to secure your perfect property and you don’t need to provide the deposit in cash.

Deposit Power offers short term guarantees to suit settlement terms of up to 6 months which are suitable for all types of residential properties including vacant land.

Helping you secure the property you want

Whether you are making an offer on a property or buying at auction, a Deposit Power Guarantee can be arranged quickly. Once you know you have the funds available to complete the purchase, you are ready to apply for a Deposit Power Guarantee. Before being issued with a deposit guarantee, you just need to demonstrate your ability to settle.

A Deposit Power Guarantee does not remove your obligation to pay the deposit, it just delays payment of the deposit amount until settlement.

Cost effective and convenient

Sometimes you may not have ready access to the cash deposit required to secure a property or may prefer a more cost effective alternative to using your own cash. This may happen when you:

  • Have sold your current home but funds are not yet available for your deposit
  • Are a first Home Buyer and won’t have access to the deposit amount until settlement
  • Are an investor and the loan funds are not available until settlement
  • Do not want to pay penalty costs for breaking a fixed term investment or selling shares
  • May want to attend one or more auctions without having to put aside funds for the deposit each time

A safe choice

Established in 1989, Deposit Power has grown to become the experienced market leader in the deposit guarantee market and has assisted over 750,000 Australians to buy property. All Deposit Power Guarantees are issued by Deposit Power Pty Ltd as Authorised Manager for CBL Insurance Ltd, so you know you are in safe hands.

Frequently Asked Questions

Frequently Asked Questions
Can I use the Guarantee at auctions??
Yes. A Deposit Guarantee can be issued prior to you attending an auction. The Guarantee amount is fixed, but not the property details, so you can attend a number of auctions. You simply complete the vendor and property details on the Guarantee Certificate when you are the successful bidder.
Will the vendor accept the Guarantee?
The Guarantee is legally enforceable and available throughout all states and territories in Australia. It is at the discretion of the vendor whether to accept a Deposit Power Guarantee in lieu of a cash deposit. However, the vendor is often keen to obtain a contract of sale on the property and secure a deposit commitment from the purchaser. The Guarantee can usually be organised within 24 hours.
It is recommended that a Suggested Special Condition (found on the back of the Guarantee Certificate and available from the Deposit Power website) is inserted or annexed to the Contract of Sale. This condition will amend the deposit provisions and allow the Guarantee to be used.
When does the Guarantee expire or terminate?
If you return the original unused Deposit Power Guarantee within 30 days of the date of issue, the fee will be partially refunded to you.
An administration fee will be deducted and the balance will be refunded to you.
Can I obtain a refund if I don’t use the Guarantee?
If you return the original unused Deposit Power Guarantee within 30 days of the date of issue, the fee will be partially refunded to you.
An administration fee will be deducted and the balance will be refunded to you.

What you need to do to apply

To apply, you just need to complete an application form and show us that you have sufficient funds to complete the purchase at settlement. Examples of information we need include:

  • A loan approval
  • A copy of the Contract for property sold that will assist in the purchase of the new property
  • Evidence of funds accessible prior to the completion date, such as savings, a fixed term deposit, or share certificates
  • Suitable identification will also be required

Long Term Guarantee

Secure the perfect property without using your own funds

After finding the right property, secure the purchase without tying up your own cash for the deposit, with a Deposit Power long term guarantee.

A Deposit Power Guarantee is a substitute for the cash deposit required when purchasing residential property and can be issued for all or part of the deposit amount required, up to 10% of the purchase price. This means when you are purchasing property, you do not have to pay the deposit in cash when the contracts are signed, you simply pay the full purchase price at settlement.

Deposit Power offers long term guarantees to suit settlement terms from 6 to 48 months, and is perfect for when you are buying properties off the plan, under construction or vacant land with extended settlements.

Cost effective and convenient

You may prefer a quicker or more cost effective alternative to tying up your own cash in a deposit for long periods. This may happen when you:

  • Prefer to keep control of your cash until settlement
  • Do not have ready access to a cash deposit
  • Want to continue to earn interest on your deposit funds up until settlement

A Deposit Power Guarantee does not remove your obligation to pay the deposit, it just delays payment of the deposit amount until settlement.

The Deposit Power Advantage

Deposit Power is Australia’s most experienced deposit guarantee provider with it’s guarantees accepted by all major financial institutions and property development groups. We offer competitive fees and a streamlined application process making you our priority.

Deposit Power is the only provider of deposit guarantees that offers a fee rebate – refer to the terms and conditions on the application form for further details.

A safe choice

Established in 1989, Deposit Power has grown to become the experienced market leader in the deposit guarantee market and has assisted over 750,000 Australians to buy property. All Deposit Power Guarantees are issued by Deposit Power Pty Ltd as Authorised Manager for CBL Insurance Ltd, so you know you are in safe hands.

Go to top

Frequently Asked Questions

What can the Long Term Deposit Guarantee be used for?
A Long Term Deposit Guarantee can be used to secure residential off the plan, vacant land or under construction purchases involving settlements over six months. Deposit Power Guarantees can not be issued for contracts that include Put and Call options, or where the purchaser does not intend to settle on the property.
Will the vendor accept a Deposit Power Guarantee?
A Deposit Power Guarantee is legally enforceable and available in all States and Territories, however it is at the sole discretion of the vendor to accept it or not.
When does a Deposit Power Guarantee expire or terminate?
A Deposit Power Guarantee ceases when the Contract of Sale is completed, terminated, rescinded or the Guarantee expires, whichever happens first.
A Deposit Power Guarantee also terminates when a claim is paid by CBL Insurance Limited, the guarantor, to the stakeholder.
Can I claim a refund if I don’t use the Guarantee?
If you return the original unused Deposit Power Guarantee within 30 days of the date of issue, the fee will be partially refunded to you.
An administration fee will be deducted and the balance will be refunded to you.
Is there a fee rebate if the property settles before the Guarantee expires?
Yes. If a property settles more than six months before the expiry date of the guarantee, you can apply for a fee rebate, less an administrative fee.
To qualify for a rebate you must return the original Guarantee at least 6 months prior to the expiry date with a covering letter from either your solicitor or the vendor’s solicitor confirming the date the property settled. The rebate is based on the date the Guarantee was issued and subsequently received by Deposit Power.

What you need to do to apply

To apply, you need to complete an application form and show us you are an existing property owner. As part of the application you will need to provide:

  • A statement of your assets and liabilities, and
  • Evidence of ownership of residential property and current mortgages, and
  • Suitable identification

You will also need to have a satisfactory credit rating and meet other assessment criteria.

To find out more Call Us Today!