By Katherine Here’s an instance that many tenants deal with regularly:
You must locate a new place to live because your lease expires. You locate a home you love after doing some thorough property hunting. You know you’ve left your previous residence in good shape, so you may finish your lease with the assurance that your entire bond will be refunded.
However, rental owners do not return rental bonds right away, placing you in a difficult situation for a week while you are required to come up with a new bond and pay advance rent for the new property. It makes sense why moving is expensive.
Or perhaps you’ve been hurt by bond claims and are now cash-strapped. Regardless of your circumstance, you may have come across websites advertising “bond loans” or “housing loans,” which provide a temporary fix to help you through this time.
Here are some things you should know when moving to Queensland.
What is the bond’s value?
The maximum bond amount might vary from state to state, although it usually equals four weeks’ worth of rent. The landlord or landlady or property manager must indicate the bond amount in the lease agreement. Depending on the type of lease or property that you rent, the bond’s amount may occasionally be decided by the weekly rent. In some states, landlords and landladies have the right to demand additional bonds, for instance, if the rental property has pets.
Who pays the rental bond? Whose cash is this?
Tenants must pay the bonds listed on the lease. Co-tenants are typically individually accountable for covering their respective portions of the bond.
Once the tenants have paid, the renter should get a receipt from their landlord or property management. The tenant will often fill out a bond lodgment form. The funds are the property of the tenant(s), and the government does not permit landlord/property management to withdraw funds from the bond unless there is a reasonable cause.
What exactly is a bond loan, and how does it operate?
You can get a personal loan called a bond loan to pay for your rental bond. It’s a fantastic method to free up cash during the typically costly moving process.
Anyone who must pay a new bond first before returning the old one is a wise choice. The lag time is a well-known issue for Australian renters.
Most of the time, after applying for a bond loan and accepting it, the funds for your lease bond are transferred right to you. You can deposit the funds with the Rental Bond Board (RBO) or directly into your agent’s trust account.
Can I obtain a bond loan?
Your application for a rental bond will be evaluated based on several criteria, including your income, capacity to repay the loan, and previous credit history. As a general rule, you should:
1. Having reached the age of 18 and residing in Australia;
2. Be prepared to submit your bank statements electronically;
3. Not filed for bankruptcy or engaged in a part 9 arrangement within the previous 12 months;
4. Be a regular, part-time, or full-time employee; and
5. Recognize that you cannot rely just on income.
Conclusion
Bond loans might be a terrific option if you require to move but lack the funds to buy a bond. Generally speaking, they are relatively straightforward loans that let you spend the money to obtain the perfect home before your past landlord release your bond on your current home.