Rental Bond Loans

Paying a rental bond can be tough – especially when you’re already covering other moving costs. Across Australia, a rental bond usually equals four weeks’ rent, which can be a significant upfront cost for many renters. With the national average weekly rent sitting at $655, the standard household needs around $2,620 just to secure a new place.

A rental bond loan can help ease that pressure. These small loans let you borrow up to $5,000 to cover all or part of your bond, with repayment terms of up to two years. The application process is fast and simple, and in some cases, funds can be in your account the same day – so you can get your bond together quickly without the financial strain.

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 to cover your rental bond, 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.

Can I apply for a bond loan with my housemate or partner?

No, unlike personal loans, which can allow joint applicants, rental bond loans are designed for individuals only. This means each tenant needs to apply separately if they require financial help with their share of the bond. Small loan lenders assess your ability to repay based on your own income and credit profile, not your housemate’s or partner’s.

If you’re moving in together, you can decide how to split the bond between you – for example, each paying half or covering the portion that reflects your rent share. This ensures everyone is responsible for their own loan and repayments, even if you’re listed jointly on the lease.

How to apply for a rental bond loan with Savvy

1. Fill out our online form

   Tell us about yourself, your employment and income, and how much you need for your rental bond.

2. Receive an instant outcome

   We’ll match you with one of our lenders and you can be conditionally approved in 60 seconds.

3. Have your application formally assessed

   Your lender will confirm you meet eligibility requirements for age, residency and income and request any extra details if needed.

4. Get approved and receive your cash

   Once approved, sign off on all the loan documents and get the funds you need for your rental bond as soon as the same day!

Apply now

How else can I get the money for my rental bond?

If you don’t have the savings to cover a rental bond, there are government programs in each state and territory in Australia that can help. These programs can provide interest-free loans repayable over one to two years to cover part or all of your rental bond, offering a more affordable alternative to traditional cash loans.

For example, NSW offers the Rentstart Bond Loan to help eligible applicants who meet residency, income and asset requirements. The loan can cover up to 100% of the bond and is typically repaid over 12 to 18 months. Some states and territories may also offer up to two weeks of rent in advance.

Each program has its own eligibility criteria, so it’s a good idea to check your local service for details. Here’s where you can find information about rental bond assistance programs in each state and territory: