Bond Loans

Although buying a new home is expensive, you don’t have to be filthy rich to become a homeowner. If you support a low or middle-income family, getting a bond loan will help you buy a new home without being under substantial hardship. 

In this article, we’ll explain how to get a bond loan, how Centrelink bond debt consolidation loans work, and how to get pre-approved for a bond loan, or other small loans. So, without any further ado, let’s get right into it.

What’s a Bond Loan?

Our investigation demonstrated that, a bond loan is an amount of money that’s dedicated for covering a rental bond. The latter has nothing to do with your rental; it’s an amount that the owner takes before tenancy. The rental bond will be held for as long as you’re living in the rental property and shall be returned upon evacuation, supposing there are no extra costs required for fixing the house. 

bond loan pre approval

Types of Bond Loans and Rental Grants in Australia

There are three main types of trustworthy unsecured loans for bond:

  • A bond loan: Usually, this personal loans guaranteed approval no bank account is interest and fee-free with a maximum amount that covers four weeks of rent for private accommodation.
  • Bond loan plus: A bond loan plus offers an additional two-week rent coverage, with a total of 6 weeks of rent.
  • Rental Grant: This grant is reserved for those with a rental crisis, and is considered as a one-off loan that covers only two weeks of rental. 

These types of loans for the unemployed with bad credit are mainly in Queensland, but if you live somewhere else, things can be a bit different.

How to Apply for a Bond Loan?

centrelink bond loan

When we trialed this product, applying for a bond loan has different requirements depending on where you live, and accordingly, the lender you’ll deal with. You can find many bond loans online, which gives you more options to choose from. 

Usually, there’ll be a bond loan application form that you’ll need to fill at one point or another. However, before filling the application, you need to check the bond loan eligibility to avoid wasting your time.

Bond Loan Requirements

To apply for a short term personal loan, you need the following:

  • Proof of identity: Could be a passport, a medical card, or even a driver’s license. Some places require at least two proofs.
  • A proof of income: Usually a payslip
  • Proof of Australian residency status
  • Tax return documents
  • A bank statement: Not always needed, but some lenders will ask for it. 
  • Details of the rental property.

Bond Loan Eligibility

Drawing from our experience, the eligibility criteria differ from one lender to the other, so in the coming section, we’ll sum things up for each type. Kindly note that these terms differ from city to city. While these conditions are applied in Canberra and Queensland, things might be a bit different in other cities such as Townsville, Ipswich, Bundaberg, and Toowoomba. 

Eligibility for a Bond Loan

centerlink bond loan

To be eligible for a title loan in Australia, you should be an Australian citizen or at least a permanent resident with less than $2500 whether in cash or as savings. That’s because these loans are only available for those with low incomes or have no or little savings.

It’s essential that you’re not currently living in the rental property as well, and that this property doesn’t cost more than 60% of the gross weekly income.

Bear in mind that you’re not eligible for the loan if you meet all these requirements, but you already own a place, or you’re currently in debt. There’s an income limit to get accepted as well, depending on the number of households.

The above, of course, applies only if you want to apply for a government loan for low income earners. Online lenders, on the other hand, can lend you the money you need despite some of these terms, and if you have a good credit history, you won’t suffer from high-interest rates. 

Eligibility for a Rental Grant

pre approval bond loan

Getting a rental grant is a bit more complicated, and it’s only available once in a lifetime. Consequently, applicants who’ve received a rental grant before won’t get accepted.

Moreover, these grants are saved for those who are homeless or at risk of becoming homeless, unless you’re experiencing domestic violence. This applies to those who have recently been discharged from hospitals after severe illnesses or accidents and citizens discharged from correctional facilities or child protection services.

Frequently Asked Questions:

Can I get a Bond Loan Pre-approval?

Many online lenders offer pre-approvals for bond loans to get same day loans. However, a pre-approval doesn’t grant you a final approval. It simply indicates that this lender would probably lend you the amount you’re requesting if you applied for payday loans Australia

Can Centrelink Pay for a Bond Loan? 

apply for bond loan

Yes, although it’s a bit harder to find a good deal; you’re still eligible for a pensioner loans in many cities if you’re receiving a Centrelink payment. The amount of the settlement loan no credit will be automatically deducted from the payment before you receive it.

Can I Still Get a Bond Loan With Bad Credit? 

It won’t be easy, but it depends on the amount you need. Regardless, there’s a good chance you can get a bond loan from online lenders despite the bad credit. In such a case, you’ll pay a considerable interest rate. However, you can still find some competitive offers that will help you get by without wasting your money on excessive fees or interest rates. You’ll just need to dig a little deeper than usual. 

Final Thoughts 

Getting instant bond loans is easier once you figure out what you qualify for. Lucky for you, it’s becoming more popular than ever, so you can find excellent offers just browsing the internet for an hour or so. Nonetheless, make sure to choose a qualified lender that can be trusted, and you’ll be moving into your new home in no time.

About the Author

Lucy has over a decade of experience in finance. She is currently the content curator here at Perfect Payday.

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