Move First Finance › What is the difference between bridging finance and a deposit bond?

What is the difference between bridging finance and a deposit bond?

A deposit bond is a guarantee that covers the deposit at exchange without cash, used at the start of a purchase. Bridging finance actually funds the full new purchase until your old home sells. They solve different parts of the timing problem.

Written by Ross McFarlane, Licensed Mortgage Broker (Credit Representative 526725). About the author

Why this matters

These are often confused. A deposit bond simply stands in for the cash deposit at exchange, useful if your funds are tied up until settlement. Bridging is bigger, financing the entire purchase across the gap between buying and selling. Some buyers use a deposit bond alone; others need full bridging. The right tool depends on where your timing pinch is.

The key points

A deposit bond covers the deposit at exchange.
Bridging funds the full new purchase.
They solve different timing problems.
The right tool depends on your situation.

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Last reviewed: June 2026

General information only. This page provides general information about home loans and is not financial or credit advice, a quote, or a guarantee, and your personal circumstances have not been considered. Lending policies, interest rates, fees and eligibility vary by lender and change over time. Always confirm your own situation with a licensed mortgage broker or lender before acting. Ross McFarlane (Credit Representative 526725) is an authorised Credit Representative of Australian Associated Advisers Pty Ltd t/a Keylend, Australian Credit Licence 392169.