When the deposit is tied up in a property you own or a sale yet to settle
- Indicative assessment within 2 business days, with funding typically 1 to 6 weeks after that
- Loans from $20K to $500K, secured over property you already own
- Home buyers, and people buying a residential investment in their own name
- Covers a deposit held as equity in your current home, or in a sale that has exchanged but not settled
- Full-doc (tax returns), low-doc or alt-doc (BAS, bank statements or an accountant's letter instead) across our 90+ lender panel
You have found the next property, and the money for the deposit exists, just not in a bank account. It may be equity in the home you live in, or the proceeds of a sale that has exchanged and will not settle for some weeks. Deposit finance is a loan secured over property you already own, used to pay the deposit on a purchase. It adds a second debt and a second set of costs, so the options that charge no interest come first below. If a loan still suits you after those are checked, Joseph Farhat and his team can show you which lenders will consider it, what it costs over the term, and how it changes your borrowing for the purchase.
Worth checking before you borrow a deposit
- Savings and timing: if the deposit can come from money you hold, or the purchase can wait until your own sale settles, there is no loan to repay and no interest to pay.
- A deposit bond: a guarantee issued or backed by an insurer that stands in place of a cash deposit. It is not a loan, and the vendor must agree to accept it. Ask the issuer what it costs. We do not issue, arrange or advise on deposit bonds; your conveyancer or a bond issuer can tell you whether one suits your purchase.
- Early release of your buyer's deposit: if you have sold, the deposit your buyer paid may be released to you before completion, by agreement. Your agent and conveyancer can tell you whether that is possible on your contract.
- The Australian Government 5% Deposit Scheme: first home buyers can buy with a 5% deposit (2% for single parents) and without lenders mortgage insurance (LMI), which protects the lender, not the borrower. Price caps apply by location, and Housing Australia confirms who is eligible.
Who we can help access finance
- Homeowners about to exchange on their next home, with the deposit held as equity in the home they live in, which is still on the market.
- Sellers whose sale has exchanged, where the buyer has not agreed to release their deposit early and settlement is several weeks after the deposit is due on the next purchase.
- People buying a residential investment property in their own name, using equity in their home for the deposit and costs.
- Self-employed buyers whose latest tax returns do not yet show current income.
How Deposit Finance Works
There are two common ways to fund a deposit from property. The first is an equity release. Your lender, or a new one, lends against a property you already own, often as a separate split from your existing home loan. The split is repaid like any other home loan, or cleared when a sale settles. The second is a short bridging-style loan secured over a property that is being sold. It is repaid from the sale proceeds, and many lenders allow up to 12 months. Either way, the loan is secured by a mortgage over your existing property, so that property is at risk if repayments are not made. Get independent legal advice before you sign.
A borrowed deposit also changes the purchase loan. The lender for the new property counts the deposit loan as a commitment, and banks test the repayments with APRA's 3 percentage point serviceability buffer added to the rate. Many lenders also want to see genuine savings, money you have saved or held over time, before they approve the purchase loan, particularly where the loan-to-value ratio (LVR), the loan as a share of the property's value, is high. A borrowed deposit is generally not treated as genuine savings. That is why the two loans have to be assessed together, not one after the other.
Joseph Farhat and his team compare options across 90+ bank, non-bank, and specialist lenders. We are a finance broker, not a conveyancer, lawyer or financial adviser, so your conveyancer confirms what the contract requires.
What Lenders Assess for Deposit Finance
The security
the value of the property you own, what is owed on it, and how much equity a valuation supports.
Both loans together
your income has to service the deposit loan and the purchase loan at the same time, not just one of them.
How the deposit loan is repaid
from your income over the term, or from a sale that has a signed contract and a settlement date.
Genuine savings
many lenders want evidence of funds saved or held over time for the purchase, separate from the borrowed deposit.
The purchase contract and other debts
the price, deposit and dates, plus card limits and loans that reduce what you can borrow.
The Deposit Finance Process: What to Expect
- Talk to Joseph Farhat and his team about the purchase, the deposit due date, the property you own and any sale contract.
- We check the alternatives with you first: a bond, a release of your buyer's deposit, or your own sale timing.
- If a loan is still the path you choose, we test the deposit loan and the purchase loan together against lenders whose policy fits.
- A valuation is ordered and the lender issues an approval with the rate, comparison rate, fees, term and security. We go through the total cost with you before you sign.
- The loan funds where the timing allows, and is repaid over its term or from your sale.
Indicative Finance Options
| Lender Type | Pricing | Typical Loan Range | Loan Term | Security | Speed to Funding |
|---|---|---|---|---|---|
| Bank | Sharpest available pricing | $20K to $500K | Up to 12 months bridging, or a home loan split up to 30 years | Mortgage over property you own | 2 to 6 weeks |
| Non-Bank Lenders | Priced for flexibility and shorter terms | $20K to $500K | 1 to 12 months, or a home loan split up to 30 years | Mortgage over property you own | 1 to 3 weeks |
| Private Finance | Not typically used for consumer deposit finance. Available for unique scenarios only. | ||||
Indicative figures only. Actual terms depend on your circumstances, the property, and lender assessment at the time of application. We quote your rate and comparison rate for your specific loan amount and term before you apply. Terms are subject to change.
Why borrowers choose Settled With Joe for deposit finance
We represent you, not the lender
Joseph Farhat and his team act in your interest, and on consumer lending that is a legal duty.
The non-loan options first
a bond, a deposit release or your own sale timing are checked before any loan is discussed.
Two loans, one assessment
the deposit loan and the purchase loan are tested together, so you can see how each affects the other before either is lodged.
One conversation, not a run of applications
each credit enquiry is recorded on your file, and the purchase loan adds a second one, so both lenders are chosen before either application is lodged.
A broad panel
90+ bank, non-bank, and specialist lenders, so a clear file can go to a bank and a complex one still has options.
Private finance for unique scenarios
where bank and non-bank lenders are not the right fit, we can introduce you to private finance options.
Usually no direct cost to you
as a broker we are typically paid by the lender on settlement.
An honest answer early
tell us the date the deposit is due, and Joseph Farhat and his team will tell you what is realistic by then.
Frequently asked questions
What is deposit finance?
It is a loan, secured over a property you already own, that pays the deposit on a purchase. It usually takes the form of an equity release on your current home or a short bridging-style loan repaid when your own sale settles. It is a second debt alongside the purchase loan, with its own costs.
Will applying affect my credit score?
Every credit enquiry is recorded on your file, approved or not, and the purchase lender will see the deposit loan enquiry. We work out which lender fits the deposit loan and the purchase together before anything is lodged.
What is a comparison rate, and why are no rates shown on this page?
A comparison rate adds most standard fees to the interest rate, for a set amount and term. A deposit loan held for a few months carries its fees over a short period, which changes the real cost. We quote both for your actual amount and term, not a headline figure.
Do you work with borrowers with bad credit?
Yes, we do. A default or a past arrears listing does not rule you out, and nobody here will make the conversation awkward. Lenders also look closely at the equity in the property you own and at whether you can service both loans. Some lenders on our panel weigh those more heavily than the credit file and price for the risk rather than decline it. Telling us early means the file goes to the right lender first.
Do you act in my best interests?
Yes. When we give you credit assistance on consumer lending, the law requires us to act in your best interests and to put your interests first if they conflict with ours. We ask about your circumstances, what you want the loan to do and what you can afford, and we check that information. You receive our Credit Guide before we provide credit assistance.
Is a deposit bond the same as deposit finance?
No. A deposit bond is a guarantee, issued or backed by an insurer, that the full deposit will be paid by an agreed date. It is not a loan. The vendor has to agree to accept it. If completion has not happened 14 days before the bond expires, the 2026 NSW contract requires a replacement bond at least 7 days before expiry. We do not issue, arrange or advise on deposit bonds. Your conveyancer or the bond issuer can explain how one would work on your contract.
Can the deposit from my own sale be released to me early?
Sometimes, by agreement. In NSW, release before completion is something the buyer and seller agree to, and it is not limited to funding another purchase. The contract treats a released deposit as a charge on the land in the buyer's favour, but it also warns that the buyer's right to recover it may stand behind the rights of others, such as the vendor's mortgagee. That is why some buyers and their conveyancers are cautious about agreeing. Victoria has its own conditions. Your agent and conveyancer can confirm what applies.
Can I use the 5% Deposit Scheme instead?
If you are buying your first home, check it first. On 1 October 2025 the Home Guarantee Scheme streams, including the First Home Guarantee, were renamed the Australian Government 5% Deposit Scheme, with no income caps and unlimited places. Price caps apply by location, so use Housing Australia's price cap tool.
Do lenders accept a borrowed deposit?
Some do, under their own policy, and many want genuine savings as well. A borrowed deposit is generally not treated as genuine savings, so the purchase lender may ask for evidence of funds you have saved or held over time. Policy varies from lender to lender.
What happens if the deposit is not paid on time?
That depends on your contract, so ask your conveyancer first. Paying the deposit late can put the buyer in default. On a buyer's default, the NSW standard contract lets the vendor terminate, keep a deposit of up to 10% and sue for any loss on resale, and your conveyancer can explain how that applies if the deposit was not paid in full. A deposit bond not replaced on time can also give the vendor a right to terminate.
Can the deposit loan be repaid from my sale when it settles?
Often, when it is set up as a bridging-style loan over the property being sold. The sale proceeds clear it at settlement, and many lenders allow up to 12 months. If the sale settles for less than expected, or does not proceed, the balance stays as a debt secured over your property, so lenders also look at whether your income could carry it. Early termination fees on residential loans have been banned since 1 July 2011, with limited exceptions, but discharge fees and fixed-rate break costs can still apply.
Why work with Settled With Joe to arrange your deposit finance?
Because one conversation covers the deposit, the purchase loan and the timing of any sale together. We help homeowners buying their next home, investors buying in their own name and self-employed buyers, and there is no judgement in the conversation. What matters is the equity you hold, whether you can service both loans, and how the deposit loan is repaid. Our panel covers 90+ bank, non-bank, and specialist lenders, so a well-documented file can go to a bank at sharper pricing. We are based in Sydney and work with buyers Australia-wide. Joseph Farhat and his team will tell you honestly and early whether a loan fits.
Do you give financial advice?
No. We do not guide you on your finances, nor give financial advice. We focus on outcomes and solutions of presenting your unique scenario to the right lender so you can access funding in a timely and compliant manner.
Do you help with deposit finance outside Sydney?
Yes. Settled With Joe is based in Sydney and arranges deposit finance Australia-wide, in metro and regional areas. We work with buyers in Sydney, Melbourne, Brisbane, Perth, Adelaide, and Canberra, as well as regional areas such as Newcastle, Wollongong, Geelong, Gold Coast, Sunshine Coast, and Toowoomba. Deposit release rules differ between states and lending limits vary by location, so we match the property you own to lenders active there.
