Rental bond loans are cash loans that you can take out to cover all or part of the cost of your bond if you are short on funds when moving house.
You can borrow up to $5,000, depending on your financial situation and the lender's criteria. The application process is fast and straightforward, with funds typically deposited to your account the same day and sometimes in as little as an hour – allowing you to get together the money for your bond quickly and with minimal stress.
By spreading your repayments over several months or even two years as fixed instalments, these loans can help you manage your budget and avoid financial strain when moving home.
How much will my rental bond loan cost?
The cost of a rental bond loan depends on two main factors: the amount you borrow and the repayment term.
These loans come with a set pricing structure and government-imposed caps on fees and interest that aim to provide protection against predatory lending practices that could saddle borrowers with unmanageable debt.
For loans up to $2,000, the establishment fee can be up to 20% of the loan amount, and the monthly fee is capped at 4%. For example, if you borrow $1,500, the maximum establishment fee would be $300 and the monthly fee would be $60. If you repay the loan over 12 months, you will pay $1,020 in fees on top of the borrowed amount, bringing the total cost of the loan to $2,520.
For loans between $2,001 and $5,000, the structure changes slightly. The establishment fee is capped at $400, and the interest rate can be up to 48% per annum. For example, if you borrow
$3,000, your establishment fee would be $400 and interest would accrue at 48%. Over a 12-month period, your monthly repayment would be around $362, bringing the total cost to $4,347.
The longer the loan term, the more interest you’ll pay. While a longer term might lower your monthly payments, it will increase the overall cost. Therefore, it’s essential to consider your budget and financial situation to find the best balance between affordable monthly payments and the total loan cost.
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Cash loan eligibility and information
Frequently asked bond loan questions and answers
Bond loans don’t get secured against property or possessions, so they’re pretty flexible. That frees you up to pay for a few different things with one round of borrowing. On top of your bond, you may want to fund advance rent, as well as the cost of furniture and appliances – and even removalists.
Rental bond loans are a quick lending option with funds typically hitting your account within a few hours of approval. However, the speed of delivery will depend on various factors, such as:
- Whether your application is submitted within business hours
- If you provide all required documents upfront
- How quickly your lender processes your application
- The speed at which your bank processes the loan funds
Applying for a bond loan with Savvy is simple. We’ll quickly match you with the best lender for your circumstances; then, you’ll get directed to their site. The entire application process gets carried out on the web from your phone or computer. You can upload documents and fill in forms, then receive money directly into your bank account.
No – your landlord won’t be informed if you take out a rental bond loan. The loan process is strictly between you and the lender, so there’s no need to notify your landlord. Once you receive the loan, you can pay your bond directly to your landlord or the relevant authority, just as you would if the funds came from your own savings. The only difference is that you’re using a loan to cover the cost, but this remains a private financial arrangement between you and your lender.
No – rental bond loans are designed to be taken out by individuals, meaning you won’t be able to apply jointly with your partner or housemate. If you need to share the cost of a rental bond with someone else, you may want to explore other options such as personal loans, which can allow joint applications.
Yes – you can get rental bond help in each state and territory in Australia provided you meet eligibility requirements. These programs can provide interest-free loans to cover part or all of your rental bond, offering a more affordable alternative to traditional cash loans. Find out more about rental bond assistance in your state or territory here.
Small loans to suit your circumstances
Cash loan cost table
| Small (SACC) loans | Medium (MACC) loans | |
|---|---|---|
| Minimum loan amount | $100 | $2,001 |
| Maximum loan amount | $2,000 | $5,000 |
| Minimum loan term | 16 days | 16 days |
| Maximum loan term | 12 months | 24 months |
| Repayment schedule | Weekly, fortnightly or monthly | Weekly, fortnightly or monthly |
| Establishment fee | Up to 20% of your loan amount | Up to $400 |
| Interest | N/A | Up to 48.00% p.a. |
| Monthly fee | Up to 4% of your loan amount | Included in the 48.00% p.a. maximum |
| Example loan | $1,500 loan over six months repaid fortnightly
Costs: $1,500 (loan amount) + $300 (establishment fee) + $360 (4% fees over six months) Total cost: $2,160, repayable in instalments of $167 per fortnight | $3,000 loan over 12 months repaid fortnightly
Costs: $3,000 (loan amount) + $400 (establishment fee) + $912 (total interest over 12 months) Total costs: $4,312, repayable in instalments of $166 per fortnight |
Disclaimer:
The information on this website is of general nature and does not take into consideration your objectives, financial situation or needs.
For loans between $2,050 and $5,000, the APR is between 21.24% (minimum) and 48% (maximum) per annum. Comparison rate of 65.4962%. Minimum term is 16 days and maximum term is 24 months. The cost of the loan is a $400 establishment fee and monthly interest charged on the amount borrowed. For example, a loan of $3,000 over 3 months with an APR of 48%, (comparison rate of 65.4962%), will have an establishment fee of $400, monthly repayments of $1,225.20. Total repayments of $3,675.60 and total interest payment of $275.60.
Warning: A comparison rate indicates the true cost of a loan. Comparison rates are true only for the examples provided and may not include all fees and charges. Different terms, fees or loan amounts might result in a different comparison rate.
