Deposit Bond Calculator
Compare what you pay now and at settlement using your quoted deposit bond fee.
Bond quote
Enter the dollar fee on your quote.
Include charges you expect to pay before settlement.
Purchase and loan
Cash already credited towards the purchase price.
Include costs still due. Leave bond fees out.
Dates and available cash
Optional. Enter what will be left after upfront payments.
Results
Cash needed at settlement
$120,000
Total bond fees
$900
Quoted fee as a share of the bond
Extra cash before settlement
$59,100
Settlement cash shortfall
Not entered
Quoted expiry
After settlement
Cash timing comparison
| Payment | Amount |
|---|---|
| With a deposit bond | |
| Total paid before settlement | $900 |
| Price due at settlement | $600,000 |
| Your cash toward the price | $120,000 |
| Cash needed at settlement | $120,000 |
| All-cash deposit | |
| Total paid before settlement | $60,000 |
| Price due at settlement | $540,000 |
| Your cash toward the price | $60,000 |
| Cash needed at settlement | $60,000 |
Use the Quoted Bond Fee
Enter the bond amount and dollar fee from your quote. The calculator divides the quoted fee by the bond amount to show what share of the guarantee the fee costs. Use that percentage to read this quote. A different bond amount or term needs its own quote.
Enter the quoted term separately from any extension charge. Enter the expiry date shown on the quote or bond, since the term alone gives no calendar date. The calculation treats the quoted fee and any entered extension or other charges as paid before settlement. It adds them to any cash deposit paid upfront.
Compare the Cash Timing
A deposit bond guarantees the part of the deposit it covers when the seller accepts it. At settlement, the buyer still needs to pay that amount as part of the price. The calculator subtracts only the cash deposit already credited from the purchase price to work out the price due.
The all-cash option replaces the bond with a cash payment of the same amount. Any cash deposit you already paid stays in both options. Enter the loan funds you expect to be available at settlement. The calculator subtracts those funds from the price due plus any other entered settlement costs to work out how much cash you need. If loan funds cover the full amount, cash needed is $0.
Work Through a Quoted Bond Example
Take a hypothetical $600,000 purchase with a $60,000 bond, a $900 quoted fee and $480,000 in loan funds. With no cash deposit paid, the full $600,000 is due at settlement. The buyer contributes $120,000 towards the price after the loan. The $900 fee is 1.5% of the bond amount and is paid separately from the price.
Paying the $60,000 deposit in cash leaves $540,000 due at settlement. The same $480,000 loan leaves the buyer with $60,000 to pay towards the price. Both examples leave out other settlement costs.
Read the Fee and Later Cash Requirement
The example defers $60,000 of the deposit. After paying the $900 fee, you have $59,100 more cash on hand before settlement than if you paid the deposit in cash. You still need the deferred $60,000 at settlement. If the fees exceed the amount deferred, the cash kept figure is negative.
Enter your available cash after upfront payments to see any shortfall on settlement day. The calculator uses your entered figures. Your conveyancer or solicitor can confirm the final amount on the settlement statement, and the lender confirms the loan funds available.
If the quoted bond expiry falls before settlement, ask the issuer about extending the bond and confirm any new expiry and fee before relying on it. If both dates are the same, check the exact expiry time and the contract’s requirements with your conveyancer or solicitor.
Ask your conveyancer or solicitor to confirm that the seller accepts the bond under the contract. Read the issuer’s indemnity terms. The issuer can seek repayment from you if it pays a valid claim. The issuer decides whether to issue a bond, and the lender decides whether to approve the loan.
