Quite simply a deposit bond is a form of an insurance guarantee in lieu of a cash deposit on a home. It defers the need to use your cash up front, saving the hassle of loan applications, awkward family conversations, or credit card debt. 

The use of deposit bonds have been a standard practice in the Australian real estate world for decades, and are newly available in Canada.

Just like with a traditional house deposit, the buyer pays the full purchase price at settlement.