A word from Deposit Power
Deposit Power takes a specialised approach to helping Australians secure their next property, providing a fast, flexible alternative to an upfront cash deposit.
In a market where buyers are carefully weighing timing, liquidity and their financial position, we work with brokers to introduce deposit strategy earlier in the property journey – not simply when a cash deposit becomes a hurdle.
Our deposit bonds can help clients move forward with confidence while keeping their cash available or working for them until settlement. Through a streamlined digital process, dedicated scenario support and bonds underwritten by HDI, which holds an “AA-” (Very Strong) credit rating from S&P Global Ratings, we help brokers give more property transactions a way forward.
After several years of strong demand, Australia’s property market has entered a more cautious phase, with elevated rates, serviceability challenges and changes to tax policy contributing to greater restraint among buyers.
Early signs suggest the spring selling season has opened on a subdued note, with Cotality reporting a 31.1 per cent decline in auction numbers across the capitals during the first week of September.
While it remains too early to determine how the season will ultimately play out, it’s clear the slowdown is not being felt uniformly across the market, with some segments continuing to show signs of activity.
Data from deposit bond provider Deposit Power, for instance, reveals a 35 per cent increase in investors buying off-the-plan using deposit bonds between June and August 2026, compared with the pre-budget period from February to May 2026.
For brokers whose clients remain active in the market, having a well-planned deposit strategy in place can be critical. When the right opportunity emerges, being ready to act can mean the difference between getting a deal across the line and watching it stall, helping brokers maintain momentum and drive business growth in a softer market.
Nick Rumpff, head of sales and distribution at Deposit Power, says brokers can help clients navigate a slower market by addressing deposit and liquidity considerations early in the buying process.
“In a booming market, deposit strategies often end up being an afterthought – a reactive, last-minute fix when a buyer realises their cash is locked up in a term deposit or equity settlement,” he says.
“In today’s market, if you wait until the client finds a property to discuss how they’ll fund the deposit, this quickly becomes the biggest hurdle, causing deals to stall.”
Which buyers are still moving?
With pipelines potentially quieter, Rumpff says one of the biggest challenges for brokers is navigating a market where different groups of clients are moving at different speeds.
“On one hand, you have buyers who are frozen, waiting to see if prices drop further. On the other hand, active pockets of the market are still looking to make a move,” Rumpff says.
“That puts mortgage brokers in a tricky spot. Internal refinancing and retention may keep the lights on, but they don’t drive real growth. The primary challenge for brokers today isn’t just securing a loan approval; it’s giving hesitant buyers the confidence and structural liquidity to execute a deal without forcing them to liquidate assets or drain their liquidity at the wrong time.”
Rumpff points to investors pivoting towards new builds and off-the-plan properties as one segment that remains well placed to transact with the right deposit strategy.
“Investors are showing interest, but are realising that tying up 10 per cent in cash in a trust account for two to four years makes little financial sense in today’s rate environment,” he says.
“They’re looking for a solution like a deposit bond that lets them secure the property today while keeping their cash working in active investments or high-yield offset accounts.”
Meanwhile, Rumpff says upgraders and downsizers are likely to remain another active segment, however timing and liquidity are often the biggest challenges.
“Both of these groups usually hold a high equity position in their current property but lack the spare cash to manage the full cost of selling and buying a property before their sale completes,” Rumpff says.
“A deposit bond bridges that gap seamlessly without forcing them into costly finance options or forcing the sale of their current home too early.”
Navigating a slower market
With fewer buyers transacting, Rumpff says brokers need to look beyond securing the loan, identifying the hurdles that could prevent a deal from proceeding and positioning themselves as advisers across the broader transaction.
That could mean considering solutions such as deposit bonds as part of a broader strategy, rather than simply a last-minute fix for clients without readily available cash.
“When brokers introduce deposit strategy into the very first discovery conversation, we’ve seen two things happen: they eliminate a major friction point before it even becomes an issue, and they establish themselves as a strategic advisor rather than just a mortgage facilitator,” Rumpff says.
“Addressing deposit mechanics early keeps buyers moving forward with confidence to act when the right property pops up.”
Gemma Lawther, a broker at Queensland-based Austral Credit House, regularly works with investors and says deposit bonds are proving an increasingly valuable tool.
“Recently, I would say 95 per cent of the deposit bonds I do are for off-the-plan,” she says.
“Investors are now having to focus on new builds rather than existing, so there aren’t as many properties to pick from now.”
Lawther says flexibility can be particularly valuable for off-the-plan buyers.
“They seem much more comfortable with using the deposit bond because the initial outlay is a lot less daunting,” she adds.
She also provides the example of a couple relocating for a lifestyle change.
They had sold their existing home and were waiting on the settlement payment when they found their dream property sooner than they thought.
“We could have done a bridging loan to finance their deposit for their new home, but we looked at the difference in costs and also the effort of the bridging loan,” she says.
“It was clear as day that the deposit bond was the much better option for my clients. There were lower fees, and it was approved in as little as a few hours. They paid the deposit bond fee, secured their dream home, and had so much less stress. That was a really good result.”
Creating new opportunities
Rumpff says brokers who look beyond competing on rate and focus on solving transaction hurdles can stand out in a softer market.
“By proactively educating buyers on deposit bonds, a broker can gain a competitive edge for new clients and re-engage clients in their database who thought they had to wait months or years to save an upfront cash deposit or sell an asset,” he says.
“It also elevates the broker’s reputation with real estate agents and developers. When an agent knows a broker can provide a pre-qualified buyer equipped with a Deposit Power deposit bond, they know that deal is ready to exchange quickly without waiting on term deposits, share liquidations, or slow equity releases.
“It makes the broker an indispensable partner in the property ecosystem.”
We know that in today’s market, whether a client is bidding at auction or putting an offer on a new development, confidence is everything.
– Nick Rumpff, head of sales and distribution, Deposit Power
Lawther agrees, saying brokers shouldn’t underestimate the value of broad product knowledge when it comes to creating new business opportunities.
“Last week, I had a developer contact me who had got my name from a customer I’d worked with. They asked, ‘Can we refer all of our customers to you to have a chat about deposits?’ The customer had told them they’d had such a good experience,” she says.
“You never know where a business opportunity might come from by making sure you’ve got the knowledge of different solutions like deposit bonds.”
Rumpff adds Deposit Power has continued to evolve its offering as it looks to make deposit bonds more accessible across a wider range of scenarios, while providing brokers with greater support when navigating more complex applications.
He says Deposit Power deposit bonds have been used in more than $7.4 billion in property sales over the past 12 months, with the provider having invested in faster digital application and approval processes, tailored assessment criteria and dedicated scenario support.
“We’ve aligned our service model around taking friction out of the process for brokers and their clients, making sure speed, transparency, and reliability are baked in,” he says.
“We know that in today’s market, whether a client is bidding at auction or putting an offer on a new development, confidence is everything.”
Case study #1: The investor buying off-the-plan
Consider an investor purchasing a $1,000,000 new-build, requiring a 10 per cent ($100,000) deposit with a 48-month completion window. Handing over $100,000 cash locks those funds in a trust account, with no financial growth. By using a Deposit Power bond, the investor keeps that $100,000 in their home loan offset account and over 48 months, could save $26,000 in interest payments. Subtracting the upfront bond fee leaves the client $14,000 ahead in net savings, while maintaining complete financial liquidity during the construction period.
Case study #2: The upgrading family
Consider a growing family purchasing a $1,200,000 home before selling their current property. They hold significant home equity, but lack $120,000 in liquid cash for the upfront exchange deposit. Securing $120,000 via short-term bridging finance or increasing their loan limits can incur set-up costs and 8 per cent + interest charges running into thousands over a 90-day settlement window. A short-term deposit bond costing roughly $1,800 bridges the timing gap instantly, avoiding costly bridging interest and preventing a forced, fire-sale of their existing home.
