What is a bond loan

A bond loan can give you temporary cashflow relief at an otherwise expensive time and might be a good option for your next move. Here’s what you need to know.

Here’s a common scenario many renters encounter:

Your lease ends, forcing you to find somewhere new to live. After some diligent property hunting, you find a place you love. You know you’ve left your last home in good condition and end your lease confident that you’ll have your full bond returned.

But rental bonds aren’t always returned immediately, leaving you in an awkward spot for a week or two while you’re forced to come up with another bond and rent in advance for the new place. Ouch. No wonder moving gets expensive!

Or maybe you’ve been stung by bond claims and found yourself short of cash. Whatever your situation, you might have stumbled across websites promoting ‘bond loans’ or ‘housing loans’, which offer a short-term solution to get you through this period.

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But what is a bond loan, and how do they work?

A bond loan is a personal loan that you use to cover the cost of your rental bond. It’s a great way to free up money during what’s often an expensive moving period.

They’re a smart option for anyone who has to pay a new bond before the old bond is returned. This lag period is a well-known problem for renters in Australia.

In most cases, you apply for a bond loan, and once approved, the money is sent directly to you for your rental bond.

You can send the money straight to your agent’s trust account or lodge it with the Rental Bond Board (RBO). (In NSW, your landlord must allow you to lodge your bond online directly with the RBO).

Some bond loans, such as Rent.com.au’s RentBond, can be used for whatever moving costs you like. That could be your rental bond, rent in advance or general moving costs.

We’ve partnered with loan provider Fair Go Finance to provide renters with a bond loan through RentBond.

Pay your RentBond loan back in 21 days, interest-free

Need help paying your bond? We got you! Borrow up to $10,000 interest-free for 21 days while you wait for your bond refund. If you pay off your RentBond loan within 21 days, it will cost you nothing to use RentBond other than a few minutes of your time.

After 21 days, your RentBond reverts to a traditional bond loan.


Looking for bond loans in your state?
> Bond loans NSW – Fast approval & 21 days interest-free
> Bond loans WA – Fast approval & 21 days interest-free
> Bond loans SA – Fast approval & 21 days interest-free

Am I eligible for a bond loan?

Your RentBond application will be assessed on several factors, including your income, ability to repay the loan, and past credit history. As a guide, you’ll need to:

  • Be 18 years or older and living in Australia;
  • Be willing to provide your bank statements online ;
  • Have not entered into bankruptcy or a part 9 agreement within the last 12 months;
  • Be employed on a casual, part-time or full-time basis; and
  • Accept that Centrelink income cannot be your only source of income

Where can I go if I need help?

Before entering into any bond loan, consider the implications of late fees, interest and potential charges that can come with these products.

If you’re confident you can pay back the loan in a reasonable time (especially within 21 days), then RentBond can be a great move.

If you run into any financial trouble, you should first discuss this with your loan provider. If you’re worried about your money or debts, talk to a financial counsellor about your situation.

Have questions about RentBond?

Contact the Rent.com.au team or phone 1300 736 810, Monday to Friday, 8:30 AM – 6:30 PM AEST, or Fair Go Finance on 1300 324 746, Monday to Friday, 8:30 AM – 6:30 PM AEST or Saturday 10:00 AM – 2:00 PM AEST.

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