The Department of Housing provides Bond Loans to tenants who are on a low income, providing they meet certain criteria. Most agents will accept Bond Loans.
Once tenants are approved for a rental property, they can apply for a Bond Loan. The process can take several days as the tenants must first go through an approval process, and then paperwork needs to be signed by all parties.
If the loan is approved, the Department of Housing pays the bond in full on the tenant’s behalf, so as far as the owner is concerned, it is secured funds. The tenant then enters into a payment plan with the Department of Housing.
Recently, we have seen the emergence of private finance companies who specialise in rental bond loans. One such company is ‘Easy Bondpay’. They work with managing agents and will pre-approve a bond loan for any tenant that the agent approves. For more information click here.