Deposit Bonds Product Information

It is a financial guarantee accepted as a legal substitute for the cash deposit required by the Vendor to be paid by the Purchaser when committing to buy property. The Deposit Bond value can be for any amount up to 10% of the agreed purchase price. At settlement, the Purchaser must then pay 100% of the agreed Contract price plus acquisition costs.

If the Purchaser defaults under the terms of the Contract the Vendor will become entitled to retain the deposit. As an unconditional guarantee the Underwriter is legally obligated to pay the Vendor’s/Depositholder’s claim on demand within the terms stipulated on the Deposit Bond. Once paid the Underwriter has full legal right of recovery against the Purchaser/s and any Guarantor/s.

QBE Deposit Bonds are a flexible safe way for Purchasers and Vendors to transact property. They are accepted nationwide across all Australian states and territories.

QBE is Australia’s largest global insurer and has been listed on the Australian Stock Exchange for over 30 years.

QBE Insurance (Australia) Limited (‘QBE’) ABN 78 003 191 035 has been the Underwriter of QBE Deposit Bonds since 2000. Consistently QBE has held at least an A+ Standard & Poor’s credit rating throughout this period. As at May 2025 its current rating is AA- (Stable).

Importantly, QBE is subject to the onshore regulatory supervision of APRA.

Due to its premier credit rating QBE Deposit Bonds are the only guarantees which have been accepted nationwide for all terms from 3 to 66 months by Vendors, their Lawyers and Lenders since 2000.

Deposit Bond Australia Pty Limited (‘DBA’) ABN28 003 772 487 has been QBE’s authorised Issuing Agent since 2006. Established in 1990, DBA is an Australian owned and operated business issuing Deposit Bonds in Australia since 1998. DBA has assisted tens of thousands of Australians purchase property worth over $40billion.

The combination of QBE’s premier AA- rating with DBA’s 27 year experience underpins nationwide acceptance by Property Groups, their Lawyers and Lenders.

QBE and DBA are the longest standing Issuers of Short and Long term Deposit Bonds in the Australian property and finance markets.

Deposit Bonds are only issued to qualified purchasers who have met QBE’s credit criteria and DBA’s assessment process of their financial capacity to settle the full property purchase price.

DBA’s qualification process requiring Purchasers prove their capacity to pay 105% purchase price before exchanging contracts reduces the Vendors settlement risk.

Deposit Bonds expand Vendors’ targets markets beyond those Purchasers with cash deposits

Purchasers of Australian residential or commercial property who can prove their financial capacity to pay 100% of the purchase price in accordance with QBE credit criteria and DBA due diligence.

QBE Deposit Bonds issued by DBA offer a wide variety of product options to meet Purchasers’ circumstances including range of terms from 3-66 months for most residential and commercial property types. Deposit Bond values range from $20,000 to $2million and are an unsecured product.

DBA offers both online and electronic lodgement of With and With Finance applications for purchasers buying as Individual/s in own name or as Corporate entities including Companies, Trusts and SMF structures.

Wide range of Purchasers buying Australian residential or commercial properties can apply for a Deposit Bond whether for owner occupation or investment including: first home buyers; retirees; SMSF; corporate buyers or developers. Auction, Private Treaty, or Off Plan purchases are acceptable

Unsecured nature of DBA issued QBE Deposit Bonds.

Purchasers are NOT required to provide any form of security allowing you to retain full flexibility of your assets. For instance:

• Cash Savings are neither used nor quarantined;
• Fixed term deposits are kept intact without the risk of incurring hefty premature break charges;
• Share portfolios can be held avoiding any need to redeem at an inopportune time risking diminished capital value or loss of dividends

To qualify each Purchaser must prove their financial capacity to settle by written evidence of:-

• Sufficient equity in hard assets (real estate; public company shares & fixed term deposits) owned at time of application; and
• Adequate income to service all current & proposed liabilities

Competitively Priced

Deposit Bond fees are paid once upon approval and prior to issue of the guarantee. There are no ongoing charges. The annualised cost of Deposit Bonds range from 1.5 – 3.3% which is particularly cost effective and compares favourably with alternate deposit options. (Note: Higher fees will apply for more complex applications or purchaser financial structures).

The requirement for payment of a 10% deposit can adversely impact a purchaser’s ability to buy their home. Deposit Bonds can be used in conjunction with Cash Deposits. For instance in a combination of a 5% deposit bond + 5% savings. This is particularly useful for “off the plan” purchases as Vendors’ construction funders will count these contracts as compliant presales.

To apply for a Bond term which is within 6 months and unconditional finance approval from a recognised Lender is in place. (Approvals subject to valuation are acceptable)

All purchasers and parties to the loan application must complete the applicant fields.

Applications lodged with finance approved for settlement have maximum bond term of 6 months due to loan approval expiry dates lapsing requiring Purchasers to provide updated supporting financial statements to extend.

DBA turnaround for this application type from lodgement is 4 business hours assuming all documentation is in order.

Applications not supported by a loan approval whether being unavailable due to Lender delays or the deposit bond term required is greater than 6 months.

DBA has been assessing and approving fully documented Deposit Bond applications since 1998 for ALL terms from 3 to 66 months on a Without Finance basis and is  authorised to conduct inhouse credit processing. This means the deposit guarantee can be made available stress free and efficiently within 24-48 hours from receipt of an acceptable application.