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Deposit Assure releases equity-only policy 

by Josh Needs10 minute read

The deposit bond provider has launched a new policy aimed at simplifying the application process for its partners and clients.

Australian deposit bond provider Deposit Assure has introduced a policy update to simplify the deposit bond application process for referral partners and their clients.

Effective immediately, the company said the equity-only assessment policy eliminates the income assessment to ensure a quicker and more efficient approval process.

Deposit Assure stated that traditional assessment and approval of deposit bonds involve either a formal approval of finance or an assessment of the income and equity position of the applicant.


It stated that while its formal approval assessment process has not changed, the lack of an income assessment requirement has simplified the application process.

Etienne Rizzo, chief executive of Deposit Assure, said that the extensive document requirements and effort needed to complete the income serviceability assessment had led to time delays and frustrations among the company’s clients and referral partners.

Mr Rizzo stated: “As we are not lending money, we believe it is not necessary to determine an applicant’s ability to service the end debt associated with the new property purchase.

“We believe that a simple alternative to underwriting a long-term deposit bond is to simply validate the required equity coverage in properties owned.”

He added that the introduction of the equity-only policy was particularly timely, due to increasing interest rates, with deposit bonds able to “save home buyers thousands of dollars as a more cost-effective instrument than paying a cash deposit”.

Deposit Assure stated that the equity-only policy would allow its referral partners to confidently refer clients for deposit bonds, knowing that its assessment is solely focused on the equity position of clients.

It said that the policy “provides a more efficient solution for both our referral partners and their clients, streamlining the process in a rapidly evolving financial landscape".

“At Deposit Assure, we continually strive to enhance our services based on client needs,” Mr Rizzo added.

“These updates reflect our dedication to listening to our referral partners, as well as providing a seamless and client-friendly experience.

“By eliminating unnecessary documentation and optimising our assessment process, we aim to simplify the deposit bond process and exceed the expectations of our clients.”

The launch of its equity-only policy followed Deposit Assure’s roll-out of instant issuance of its FLEXI Deposit Bond earlier this year, which the company said would help home buyers move quickly on their potential purchase to secure their property “on the spot”.

Previously, the company could only issue bonds within business hours, leaving home buyers having to wait until Monday after attending auctions on the weekend.

The FLEXI Deposit Bond is a pre-approved deposit bond of up to 10 per cent of a home buyer’s maximum intended purchase price.

[Related: Deposit Assure releases instant issuance]

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Josh Needs

Josh Needs


Josh Needs is a journalist on Momentum's mortgages titles: The Adviser and Mortgage Business. 


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