What is bond?
The following definition is provided by the Tenants Union of Victoria:
“A bond is a sum of money (sometimes called a security deposit) that is usually paid to the landlord or their real-estate agent at the start of your tenancy. It is held by the Residential Tenancies Bond Authority, which means that it’s still your money and doesn’t belong to the landlord or agent.
At the end of your tenancy the landlord may be able to claim all or part of your bond as compensation for any damage to the property or for unpaid rent”
How to get assistance with bond?
A person can apply for a bond loan through Office of Housing by filling out the Bond Loan application form. In order to be approved for a bond loan, a person must provide:
Here is a step by step process for securing both bond and rent in advance once a person have been approved for a property.
Getting approved and getting the $$
- Start with the real-estate agent: When they call to inform someone they have been approved, the person should request a letter for confirmation of the approval. They will need this to access the bond loan application. Let the agent know they will be in the office soon.
Remember! Let them know that the process for getting bond approved can take up to 3 days and that you’re still interested, but you can’t speed that process. You want to give them the heads up because legally they can give the property away within 48 hours if they do not have payments – and they are within their rights if they get another offer. This risk if unavoidable.
- Next stop Office of Housing: Once you have received the confirmation letter, you can go to your nearest Office of housing office with completed application for a bond loan. There is a section which the real-estate agent needs to fill out, but a letter from the agent should suffice.
- Waiting. During this time, it is worth calling Opening Doors Service to ask whether person is eligible for financial aid. These services cannot support with funding until they have a letter from office of housing confirming bond loan. However sometimes they can put aside funds for the person.
- Got the letter of approval from Office of Housing. Office of housing will usually notify you of approval over the phone and let you know they will send a letter. Do not bother waiting for this letter! Go straight to office of housing and pick it up.
- Next stop Opening Doors services: Once you have confirmation of your bond, you can apply for Rent-in-Advance. Take confirmation of your bond approval to housing services and they will issue you a check to take to the agent. Once you have rent in advance in total, provide this to agent and collect receipt!