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.
Why apply for a small loan with Savvy?
Cash loan eligibility and information
Eligibility
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Age
You must be at least 18 years of age
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Residency
You must be an Australian citizen, permanent resident or an eligible visa holder with a fixed residential address
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Employment
You must be employed on a permanent or casual basis
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Income
You must have a consistent income deposited into your bank account for at least the last 90 days
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Finances
You must be managing your existing financial commitments comfortably
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Contact
You must have an active phone number, email address and online bank account in your name
Documents
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Personal info
Your full name, date of birth, address and contact details
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Employment details
Your employment status and the name of your employer (if applicable)
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Banking
Online banking details and secure access to your bank statements
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 |
