Bond loan scheme

Last updated: 18 October 2017

If you want to rent privately in Victoria and can't afford to pay the bond, you may be able to borrow the money for the bond interest-free from us through this scheme.

What is the bond loan scheme?

If you want to rent privately, most landlords will ask you to pay a bond before you move in. A bond is a security deposit in case you damage the property. The bond money is held by the Residential Tenancies Bond Authority. It is returned in full at the end of your lease, unless the landlord is eligible to claim for damages or unpaid rent.

The full bond loan amount must be paid back at the end of your tenancy. Even if your landlord keeps some of the bond because of damages, you must still repay the full amount of the loan.

The loans are for bonds only and cannot be used for rent in advance or moving costs. If you need help with these costs, see if you are eligible for help from the Housing Establishment Fund.

Am I eligible for a bond loan?

You are eligible for a bond loan if:

  • You meet the bond loan income and asset eligibility limits
  • You are a permanent Australian resident
  • Your share of the rent is less than 55 per cent of your gross (before tax) weekly income
  • You do not own or part-own a house, flat or unit
  • You have repaid any previous bond loans
  • You do not owe any money on previous or current public housing tenancies.

There are exemptions to some of these rules. Contact your local housing office for more information.

To find out what housing options and help you may be eligible for, use our housing options finder.

How much can I borrow on a bond loan?

It depends on the number of bedrooms in the property and the number of people who will live there. In some cases, a study or separate dining room can count as a bedroom.

We work out your share by dividing the bond amount by the number of people living in the house that pay rent. For example, if four people are renting a four-bedroom house with a $1,000 bond, your share of the bond loan would be $250.

There are also limits to how much can be borrowed on a property. See maximum bond loan amounts to find out more.

How do I repay a bond loan?

See How do I repay the loan? for more information.

How do I apply for a bond loan?

See Apply for a bond loan for the process and relevant forms.

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