Frequently asked questionsNeed to know more?
Bond Loan Information
What is a rental bond?
A rental bond is a security required by a real estate agency to protect against damage to the property, cleaning costs, rent default or breach of the lease causing loss to the landlord. Depending on the size of the monthly rent, the rental bond is normally set at one month’s rent and is lodged with the relevant State or Territory Residential Tenancy Authority (RTA) or equivalent until the end of the tenancy.
What is a security deposit? Rental bonds are also known as security bonds in SA, Tasmania and WA. In the NT they’re called security deposits.
Who is BondSure?
BondSure provides a combined bond loan and bond insurance product for tenants. BondSure allows tenants to pay their rental bond over fortnightly or monthly instalments and help protect against property damage and extra cleaning with bond insurance. The insurance helps to maximise the potential of recovering the full bond back at the end of the tenancy.
How quickly is the bond paid by BondSure?
Once you have gained your bond loan pre-approval online, BondSure can pay your bond to your real estate on the same day or the next business day.
Can BondSure apply to any length of tenancy?
It is only available for tenancies of 6 or 12 months. For longer tenancies, the bond is repaid after the first 12 months and if taken, the insurance is invited for renewal annually.
How much can I borrow?
BondSure offers loans for a four-week bond amount up to the value of $5,000. BondSure loans do not cover rent in advance or moving costs. If you don’t know your exact four-week bond amount yet, that’s ok! That’s what our pre-approval process is for. Just estimate what your four-week bond amount will be when you apply online with BondSure, and you can change it to the exact amount in Step 2 of the application once you’ve decided on your rental property.
Will it mean I don't have to clean the property?
No, a tenant is required to leave the premises in a habitable condition. If you have BondSure’s bond insurance in addition to your bond loan, the bond insurance will cover cleaning over and above that which is reasonably required of a tenant. There is an excess set at 15% of the bond amount and a minimum of $200. If bond insurance is not selected in addition to your bond loan, no coverage for extra cleaning or accidental property damage will be provided.
What if I extend the tenancy for another period at the end of the lease?
The bond will stay with the RTA and as you will have repaid the loan, your only payments during the second period are the relatively low payments for the insurance cover, if continued.
Does BondSure charge interest?
Yes. The annual percentage interest rate (APR) is normally between 15 and 17.5%, depending on whether it is a 6 or 12-month lease. BondSure believes in being open and honest with you, so when you complete your application for pre-approval online, you’ll be given a full quote which includes your bond loan’s interest rate.
Does BondSure charge fees?
Yes. Each bond loan has initial fees which are payable upfront on the day that we transfer your bond loan to your real estate agent. BondSure believes in being transparent with you, so when you complete your application for pre-approval online, you’ll be given a full quote which includes your bond loan’s initial fees.
What will my repayments be?
When you complete your application for pre-approval online, you’ll be given a full quote which includes your bond loan’s regular repayments. During the application process online, you can also choose your repayments to be paid monthly or fortnightly.
Bond Insurance Information
What is bond insurance?
Without rental bond insurance, your bond can be eroded by accidental damage or increased cost of cleaning such as;
- Holes in walls
- Damaged floor tiles or ceilings
- Damaged fixtures or carpets
- Extra carpet cleaning to remove stains
- Curtains cleaned
- Timber floors re-polished
- Walls cleaned or repainted
Taking out BondSure rental bond insurance maximises your likelihood of getting the full bond back at the end of your tenancy. We will continue to protect the bond even if you roll over the tenancy into a second period, and your insurance will be invited to continue after the loan is paid off, because your bond is still at risk.
What is the maximum amount of cover?
The maximum amount of cover each period is the amount of the bond, less the excess payable. The cover for extra cleaning costs means that it sits above the requirement that you take reasonable steps to clean the property.
What is the excess on the insurance?
There is a $200 excess (or 15% of the bond if greater) for each claim for damage/cleaning costs, with a maximum of two damage/cleaning excesses in one insurance period. Whether it involves damage or cleaning, one excess will apply and only one excess will apply to damage and cleaning costs at the time of the final inspection. The minimum excess of $200 roughly coincides with the cost of a standard clean by many agents.
Will I still be covered if I renew my lease?
Yes. BondSure will send you the annual renewal documentation once your initial lease term expires. As your bond loan will be paid in full, you will only need to continue paying the nominal insurance premium, if you so desire.
The Application Process
Am I eligible to apply for a bond loan?
To be eligible to apply for a bond loan, you need to:
- Be over 18 years of age.
- Be an Australian citizen or a permanent resident of Australia. You will need Australian identification documents to complete the application.
- Be employed. Centrelink income cannot be your only source so you will also need to be working.
- Have a good credit rating. In particular, BondSure is unable to loan to you if you have been declared bankrupt or have defaulted on other loans within the past 12 months.
You will also need to:
- Be renting through a registered real estate agency. BondSure does not loan to tenants renting through private landlords or caravan parks etc.
- Be honest on your application. Your credit report and bank statements show what loans and debts you have, so it’s always best to be upfront and honest right from the start.
How can I apply for a bond loan?
BondSure only accepts applications through our website. Please head to our application to start your pre-approval.
Can I obtain pre-approval before I find a rental property?
Yes! Pre-approval is granted online in a few minutes if you meet our criteria. You will then have 60 days to find a rental property and ask BondSure to transfer the bond monies to your agent. Shop for a new home with confidence that BondSure has your bond covered!
Will my privacy be protected?
Why do you need my internet banking details?
Providing bank statements electronically via internet banking is now a standard method for loan companies to assess your loan application. BondSure utilises the services of Proviso Pty Ltd to access the past 90 days of your bank statement.
BondSure does not receive your internet banking credentials or access to your internet banking portal. Also, your credentials are not stored by Proviso Pty Ltd. Your credentials are encrypted when you enter them, passed to your bank to gain access to your transaction history and then permanently deleted.
If you are concerned about this function, you can simply change your internet banking credentials after using this service. You can also contact Proviso Pty Ltd directly on 08 7122 9452.
Can I provide my bank statements another way?
Will applying for a BondSure bond loan affect my credit score?
It may do. In order to complete your application, BondSure will need to conduct a credit check with a national credit reporting agency such as Equifax. This credit check will be added to your credit history and this may affect your credit score.
In order to prevent this application being marked on your file unnecessarily, BondSure will only check your credit score after we have confirmed that your application passes the majority of our lending criteria. You will be notified during your application as to when BondSure will conduct a credit check.
I haven't heard back about my application yet, when will I know?
If your application needs to be reviewed by one of our team members, it may take up to one business day for us to get back in contact with you. Don’t worry! We’ll be as fast as we can and contact you with the outcome of your application as soon as possible via email and SMS.
I didn't meet the credit criteria, what can I do?
As a responsible lender, if your application did not meet one or more of our credit criteria, we are unable to provide you with a bond loan at this time. You are welcome to re-apply in 30 days should your financial position change.
If you believe you have further information to add to your application that may result in a different outcome, please call us on 1300 333 007 to discuss.
Managing Your Loan
What are my payment options?
BondSure facilitates regular repayments by Direct Debit from your bank account. Your initial fees are paid via credit card at the time your bond is transferred to your agent.
Can I change my repayments?
Yes. BondSure understands that as life moves on, so may your pay day. BondSure offers fortnightly or monthly direct debits and you can change your repayment frequency or the day of the week your repayments are debited by simply calling one of our friendly team members.
What should I do if I can't make a repayment?
Part of the BondSure service is that you’ll receive SMS reminders when your repayments are due so you’ll never be caught off guard.
If you need to reschedule your repayment, please contact us as soon as possible. The quicker you let us know, the faster we can make alternative arrangements to get you back on track.
If you do happen to dishonour on a repayment, simply call one of our friendly team members to arrange for the payment to be caught up. If payments aren’t caught up, our collections team will be forced to take necessary action.
Can I pay out my loan early?
Absolutely – and BondSure has no early payout fees! When you would like to payout your loan, simply give one of our friendly team members a call and we can organise for the balance of your loan to be direct debited on the date of your choice.