A rent arrears loan is a small cash loan that can help you to cover your overdue rent if you are facing short-term financial difficulties and have fallen behind on your payments.
It can be a convenient option if you need money fast, providing up to $5,000 of funding so you can immediately pay off the rent you owe and avoid eviction and other repercussions.
If you’re looking to move into a new place and need help with upfront costs, you’ll want a rental bond loan instead.
What can you do if your rent is in arrears?
Speak to your landlord
If you’re falling behind on rent, your first step should be to talk to your landlord or property manager. It might feel uncomfortable, but they may be willing to work out a temporary payment plan or short extension to help you catch up. Acting early shows goodwill and can help you avoid formal arrears or eviction proceedings.
Review your budget
From there, take a close look at your income and expenses. Creating a clear budget can help you prioritise essentials like rent, utilities and food, and identify areas where you can cut back. If you’re finding yourself in arrears regularly, it might be worth considering a more affordable rental property to reduce financial strain in the long term.
Look at short-term options
However, if you just need a one-off cash boost to get back on track, a small loan could help cover overdue rent. This option isn’t an ongoing fix, but it can provide breathing room while you stabilise your finances.
You can compare instant cash loans from reputable Australian lenders through Savvy. The online application process is quick, and you could access a rent arrears loan of up to $5,000, repayable over terms of up to two years. This lets you spread out your overdue rent costs into more manageable repayments.
Here's an example of how it would work:
Sarah lost her job, which caused her to fall behind on her rent payments. While she has now found new work, her period of unemployment exhausted her savings and her first paycheque was not enough to cover the rent owing. With the threat of eviction looming, she needed to find a solution quickly.
Sarah applied for a cash loan through Savvy and was approved and funded for a $3,000 loan that day. She received the money as a lump sum direct to her bank account. This allowed her to pay her landlord the overdue amount and avoid eviction.
The loan repayments were spread over 12 months. As a small loan between $2,001 and $5,000, the amount was subject to a $400 establishment fee and a 48% interest rate. This amounted to $362 each month and $4,347 in total, including the establishment fee and $947 in interest. By spreading the cost, she was able to stay within budget, giving her time to get back on her feet and stabilise her finances.
Why apply for a small loan with Savvy?
How to apply for a rent arrears loan with Savvy
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Fill out our online form
Tell us about yourself, the loan you’re after and your employment and income.
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Receive an instant outcome
We’ll match you with one of our lenders and you can be conditionally approved in 60 seconds.
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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.
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Get approved and receive your cash
Once approved, sign off on all the loan documents and get your funds as soon as the same day!