NO. A deposit bond is a guarantee that the deposit will be paid at a future date. Deposit bonds are underwritten by an insurer that guarantees the vendor that the deposit will be paid in full at settlement. The purchaser is still required to pay the deposit in full. The deposit bond saves the purchaser from the need to pay the full deposit in cash when signing a contract to purchase. This means that purchasers can keep their cash and may negate the need to break investments, sell shares or arrange loans to pay the deposit now.