Government and Private Bond Loans

There are many kinds of loans available from banksan Australian permanent residency status.
and lending firms that are designed to suit a lendersThe proceeds of the government bond loans are
particular requirements. If the loan is needed to rent aintended solely for the rental bond, and therefore
house or flat, a bond loan is the ideal choice. Bondcannot be used in other ways or for other purpose.
loans are not charged with interest and are intendedThe amount of the bond loan will be dictated by the
for people who do not have the financial capacity tonumber of bedrooms of the leased property and the
pay a full rental bond upfront.number of household members who will live their. At
The rental bond is also called a refundable securitythe end of the lease period, the bond loan will be paid
deposit. It is intended to cover any compensation onback by the borrower in its entirety, regardless of the
the landlord's behalf for any damages to his propertyactual amount refunded by the landlord.
other than ordinary wear and tear during the period ofTo apply for a government bond loan, an eligible
occupancy, and for any unpaid rent at the end of theperson will have to fill out an application form and
lease period. Government-issued bond loans are tosubmit it to the nearest housing office with jurisdiction
help people who cannot afford to pay the whole bondover the area. The application process will have to
amount that is demanded by landlords.involve the landlords or their agents who will provide
This type of loan is available to people who are able tocertain information on the property as well as to
satisfy certain requirements, among which theestablish ownership of the property. Borrowers can
borrower must not own or partly own any residentialapply by themselves, as a couple or as part of a
property, a mobile home, or a boat house; secondly,shared household. A prerequisite would be the
the borrowers and the members of the householdlandlord's acceptance of the borrower's lease offer,
must meet certain income and asset limits; thirdly, theand the leased property should be in the state or
weekly cost of renting the residential property shouldterritory where the bond loan is being applied for.
not be more than a certain percentage of theHowever, there are private lending companies that
household's gross weekly income (the percentagealso offer bond loans-without the hassle of too many
varies in some states and territories); fourthly, therequirements. These lending firms promise quick and
borrower must not have an outstanding debt fromeasy bond and rent payments in one hour, plus these
previous bond loans or public housing tenancies withoffer instant approval, low interests, and low
the state or territory's housing department; and lastly,repayments. Cash amounts up for grabs start from
the borrower should be an Australian citizen or have$500.