Why you may need Bond Assistance in NSW
If you move into private rental accommodation, you’ll be expected to provide a rental bond that gives a degree of financial protection if you breach the lease agreement. This protection is provided for the landlord of the property although the bond is held by a third party until needed or the rental ends.
Before you move into a rental property, you may be required to provide several weeks’ rental in advance as well as the bond. This may stretch your finances, especially if you haven’t had the bond refunded from your previous accommodation, so you may need a bond loan in NSW to cover the costs.
What are Rental Bonds and how do they work in NSW?
The system of rental bonds is administered by the state government and requires an official document to be prepared to cover the terms of the bond. The landlord of the property is responsible for ensuring the document, known as a bond lodgement form, is lodged with the appropriate state department — a state government authority known as the Residential Tenancies Authority (RTA).
The rental bond is typically equivalent to four weeks’ rent but may be more if you have pets or you’re moving into a furnished property. The amount will be specified in the lease, and you should obtain a receipt when you pay it.
Any money you pay is deposited into a joint account that bears the names of the property’s landlord and yourself as the tenant. It will normally earn interest during the term of the tenancy.
When you eventually move out of the property, you are entitled to a full refund of the bond plus interest providing you have paid your rent on time, have caused no damage to the property and have a report showing the condition of the property has not deteriorated.
For a shared tenancy, all tenants need to be listed on the bond document and are responsible for the property and the bond. If you do take out a loan to pay for the bond, they are also equally responsible for that.
How do Rental Bond Loans in NSW Work?
If you cannot afford to pay the rental bond, you can apply for a bond loan providing you comply with certain conditions:
- You must be an Australian citizen, a permanent resident or have a suitable visa.
- All applicants must have less than $2,500 altogether in cash or savings.
- The rent for the property must not exceed 60% of the gross weekly income for all applicants. This income includes wages, various Centrelink payments, family tax benefits and youth allowance but not income paid to dependent children or various military payments for disability or compensation.
- You must not already be living in the property for which the bond is required.
- You must not own or part-own a residential property, including a mobile home, caravan or boat where you can live permanently.
- No applicant can have outstanding debts with the Department of Communities, Housing and Digital Economy.
If you are eligible, you will be approved for a Cashify loan and will also receive automatic approval if you are suffering domestic, family or sexual violence. The amount of the bond loan will be a maximum of four weeks’ rent although an additional amount can be loaned for the first two weeks’ rent so you can definitely get emergency cash immediately in Australia.
If your application is approved, you will be provided with an approval letter and a copy of the bond loan agreement. The bond lodgement form will normally be sent to your landlord, who will deliver it to the RTA once the tenancy has begun. When the form is processed, we will transfer funds for the bond loan to the RTA.
Repaying your NSW Bond Loan
The bond loan agreement will state the repayment terms and it is the responsibility of all tenants who are party to the agreement to ensure the terms are adhered to. In particular, this means the bond loan must be fully repaid within the agreement period by specified instalments at set intervals.
Individual tenants may pay different amounts, but the total amount must be at least the agreed monthly repayment. NSW Bond loan repayments can be made by cheque or money order, direct payments from bank accounts or deduction from Centrelink benefit payments.
Anyone leaving a shared tenancy remains responsible for the bond loan until removed from the bond loan agreement. If moving to another property, it is possible to transfer the bond and loan providing all tenants move, the new property belongs to the same landlord and there are no claims against the bond.
A Simple and Quick Process
We provide same day Sydney loans to make it easy for tenants to move to a new property. We make the whole process of applying, receiving and repaying a bond loan as simple and quick as possible.
If you do experience repayment difficulties, we are always available to provide help and support. So if you’re looking to move into new rental accommodation, apply for a bond loan now.