Deposit- My money or bond?

Bonds are a lot of mucking around and you will end up paying more.

Cash is easier, but you should think about deductibility. carefully structure this so that the interest will be deductible.
eg You don't want to pay $40,000 cash deposit if you still have non deductible debt, you would want to borrow the $40,000.

Having a DB is about protection and flexabililty as well…not just about cost….if it comes down to cost- then yes DB will lose out “most” of the time ( the DB is a business …they need to make money ^^)

Good example of when a DB is recommended:

1. Off the plan purchase – should the builder default, instead of chasing up your 10% back ,.you only lose out the money you pay for the DB.
2. Money tired up- If you don’t have access to your 10% required because it’s tired up in some long term/ short term bond, term deposit or your selling a place and don’t have access to the cash yet then having a DB will give you flexabililty in time + may save you $$$ especially if your breaking a 3 + years bond early.

Regards
Michael

depends how you do it.

If you put in cash from a savings account, you cannot later substitute this with borrowed funds and be able to claim the interest.

HI,

If you have paid the deposit (10% if using a DB, and whatever you negotiate if using your own funds 'temporarily') if you have done a 100% loan, as in the case where you do this by using existing security, the bank will in fact pay the 90 % as directed at settlement, and the 10% back to you – reimbursing you as such. I have done it for customers plenty of times. As a side point, if you have sufficient equity  preferably via a line of credit, or if you are cross collatorising with other existing property you have with the lender, borrowing the 100%plus costs (likely 105%+) is even better for tax purposes. All the best with your purchase.

Cheers