It’s a question that many buyers ask—can you turn up at an auction with little or no deposit and still purchase a property?

Yes, you can!

And it’s thanks to a clever tool known as a deposit bond.

What is a deposit bond?

A deposit bond acts as a substitute for the cash deposit typically required when signing a contract to purchase a property, particularly at auctions. It offers greater convenience and peace of mind, especially for buyers whose funds aren’t immediately accessible but will be available at settlement.

A flexi deposit bond goes one step further: You can arrange one even while you’re searching for a property. This can be a game-changer in a competitive property market where timing is everything.

Who can benefit from deposit bonds?

You don’t need to be a seasoned property investor to use a deposit bond. In fact, it can help a variety of buyers, including:

  • A first home buyer with only a small deposit saved
  • Buying with a guarantor without an upfront cash deposit
  • Waiting on funds that are currently tied up, such as equity from another property, inheritance, or maturing investments

In these situations, you can still participate in auctions and secure your dream property, provided you can demonstrate that the funds will be available at settlement.

Flexi deposit bonds—when you haven’t found a property yet

If you have mortgage pre-approval in place, you may be eligible for a flexi deposit bond even before you’ve found the right property. This gives you the flexibility to act quickly when the right opportunity comes along.

And here’s the best part: You don’t pay for the bond until you use it.

If you end up not purchasing, there’s no cost.

Why buyers love deposit bonds

✔ Convenient—Quick to arrange, easy to use
✔ Cost-effective—Usually cheaper than borrowing short-term funds
✔ Low risk—For flexi deposit bonds, only pay once you buy

Deposit bonds can help you move with confidence in a fast-moving market, without the stress of rushing to access cash. And with flexi deposit bonds, there’s nothing to pay upfront.

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