Instant Bond Loans: How to Apply for One
If you’re looking to secure a new rental property but don’t have the money required to pay the rental bond, you ought to consider an instant bond loan.
Instant bond loans don’t differ much from regular bond loans. The main difference is that an instant loan, as the name implies, is acquired within the same day of application, assuming the application is approved, of course.
This makes instant bond loans ideal for people in the midst of an emergency move or who are looking to move to a new property within a short timeframe.
Stick around to learn more about instant bond loans in Australia.
What Are Instant Bond Loans?
Bond loans, as the name suggests, are cash loans that you apply for when in need to secure your rental property by paying a rental deposit or rental bond.
Instant bond loans, in particular, are suited for those who are looking to move within a short timeframe and looking for a quick and easy way to acquire cash money so that they can pay the bond on the new rental property they’re trying to move to.
Assuming your instant bond loan application is approved, you receive the cash you applied for within the same day of your application.
Applying for bond loans doesn’t take but mere minutes. The process is entirely online and doesn’t require the applicant to meet up with any representative.
You can apply for an easy bond loan on your computer, phone, or tablet, with no paperwork to fill whatsoever and no hidden fees.
To apply for a bond loan in Australia, you need to be at least 18 years of age. Also, the applicant must not have entered into a part-9 agreement or bankruptcy within the last 12 months.
Furthermore, the applicant must be employed, be it full-time, part-time, or casual employment. And lastly, the applicant must be willing to provide online bank statements.
Bond Loans for Pensioners
If you’re a pensioner, you’re probably thinking that it’s impossible for you to access any credit. Well, some companies that provide bond loans work with lenders that are totally okay with offering loans for pensioners, no matter if the applicant has received an aged pension or a DSP.
The money you acquire from a bond loan as a pensioner can be used to cover a rental bond with no problems whatsoever.
Note, however, that approval isn’t always guaranteed for applicants on a pension. Requirements that relate to the applicant’s ability to repay their loan should be met in order for the bond loan to be approved. Such requirements may include a minimum credit score or a minimum salary.
Simply put, if you’re applying for a bond loan on a pension, you’ll need to prove that you’re in a secure financial situation in order for your application to be approved.
Bad Credit Bond Loans
It’s possible to get approved for an emergency bond loan on bad credit. Some companies put their clients in touch with certain lenders that are willing to overlook applicants with bad credit.
Keep in mind, however, that not all lenders share the same approach and attitude when it comes to approving a bad credit bond loan, so it’s not a sure thing.
How Much Can You Apply For?
There isn’t a straightforward answer to this question, as it all boils down on the company you’re getting the bond loan from.
Some companies offer limited bond loans from $200 up to $2,000, whereas others can reach up to $50,000. The selection process depends on the property you’re trying to pay its rental bond.
With that said, it’s important to understand that rental bonds aren’t the same as deposits. Yes, they’re both paid in advance, but only the former can be returned.
Bonds serve as a security measure for lessors who are trying to protect themselves against any breaches to rental agreements.
For example, if you move out of your property without paying the month’s rent or if you damage the property in any way, money is taken out of your bond to cover these costs.
Obviously, if you’ve been paying your rent on a regular basis and haven’t damaged the property in any way, your bond should be returned in full.
Home loan deposits, or even car loan deposits, are different from bond loans in the sense that the money you pay upfront won’t be returned to you.
Rentals Bonds in Australia
Before you apply for a bond loan, you need to learn about the typical range for rental bonds in Australia, especially if you’re not yet sure where you’re going to move.
Generally, the rent of the property you’re trying to secure determines the bond you need to pay. For instance, if the rent is $500, you’ll need to pay a bond that covers four weeks of rent, which equates to $2,000.
Landlords aren’t allowed to charge more than four weeks’ worth of rent money as a bond, but they may accept a lower amount.
The maximum amount for a bond for properties that are rented for over $700 per week tends to vary, so you’ll need to negotiate with your landlord or real estate agent to reach an agreement.
How Are Bond Loans Calculated?
Personal bond loans are almost always associated with costs. So, before you apply for a bond loan, you must first consider the money you’re going to repay to your lender.
Generally speaking, the money you’re going to repay to your lender will consist of a principal amount and an interest component.
Calculating your repayments can be done with the aid of a bond loan calculator. The financial institution you’re looking to get the bond loan from should have one on their website.
Using a bond loan calculator, you’ll need to enter inputs such as the amount of the loan and the interest rate on the loan, alongside other inputs, and the tool will automatically provide you with an estimate on your repayments.
How Do Bond Loan Applications Work?
With most financial institutes that offer bond loans, you’ll need to fill an online application form, which shouldn’t take you more than five minutes. You’ll just need bank account details, MyGov information, and your personal contact information. No paperwork is filled whatsoever.
Thereafter, the financial institution will start looking for a lender through an automated system. If you’re applying for an instant bond loan, you should be paired with a lender within hours.
Once paired and the application is approved, you’ll be directed to a digital loan contract. All you have to do is sign the contract and wait for the money to hit your bank account. Simple!
As you can see, you don’t have to jump through a lot of hoops in order to get an instant bond loan. You don’t even have to leave the house!
Hopefully, the information provided in this article has helped you get a solid understanding of how instant bond loans work in Australia and how you can apply for one.