What Is Rentstart Bond Loan and What Are Benefits?

This pose will explain about Rentstart Bond Loan and how you can benefit from the system. As you read this article, you will also learn how to apply for Rentstart Bond Loan, and what are …

Rentstart Home Loan Featured Img

This pose will explain about Rentstart Bond Loan and how you can benefit from the system. As you read this article, you will also learn how to apply for Rentstart Bond Loan, and what are the eligibility requirements. Let’s first find out what Rentstart Bond Loan is.

Rentstart Bond Loan

Rentstart Bond Loan is designed to relieve the burden of the people in NSW (New South Wales) by providing financial assistance. This government-backed loan does not charge you with any interest, and your payback goes to FACS (Family and Community Services) Housing. What you need to know is that this loan is not for recurring rental payments, but for the bond to start a tenancy in the private rental market.

You can repay the borrowed amount back to FACS Housing at the end of the tenancy if the landlord or real estate agent don’t claim for the bond due to some damage to the property.

How the Bond Is Paid

When your application gets accepted, FACS Housing will send a completed Rental Bond Lodgement form to your landlord or real estate agent. The form must be signed and returned to the Rental Bond Board. When this is completed, FACS Housing will electronically transfer contribution to the Rental Bond Board. FACS Housing will be regarded as holding a stake in the bond.

While FACS Housing has the stake, you cannot transfer the bond between tenancies or into another person’s name.

How Much Can I Get Paid

Normally your repayments will be made fortnightly based on a 12- or 18-month payment plan. In an exceptional case, there can be a 36-month plan. The repayment amount is based on how much of your income will be spent on rent. Let me give you an example.

Let’s say your income is $650 per week and the rent is $300 per week. With a Rentstart Bond Loan of $900, you will repay $25 biweekly (or $13 per week) for 18 months. If you also receive a Private Rental Subsidy, your Bond Loan payments will be decided based upon how much of your income will be spent on rent after the subsidy amount is deducted from the rent.

Wait, What Is Private Rental Subsidy?

Private Rental Subsidy is designed to help people to have affordable accommodation in the private rental market. This Private Rental Subsidy is to support recurring rent expenses while the Bond Loan is for the one-off bond when you make a contract for rent. The subsidy will provide medium-term accommodation until a social housing offer can be made. If you decline a reasonable offer of social housing accommodation, your subsidy may be terminated. If you are receiving the subsidy, the amount will be deducted from your rental fee to calculate a bond loan.

Affordable Housing for You and Your Family
Affordable Housing for You and Your Family
Photo by Picsea on Unsplash

Change in Your Circumstances

There could be a change in your situation after you are approved for Rentstart Bond Loan. Some examples include:

  • Rent increase
  • Change in your household income
  • Medical costs and expenses
  • Unexpected living costs such as high electricity bills or child care expenses.

When any of these occurs, you should contact FACS Housing Contact Centre to discuss your situation and available options. To find the contact number, go to the FACS website.

Get Your Bond Money Back After Full Repayment

When you have made full repayments before the end of your tenancy, you can claim your bond money back by applying NSW Fair Trading. If your tenancy ends before the loan is paid back in full, FACS Housing will take back the bond from the Rental Bond Board and will return to you an amount you have paid off your loan less any landlord or real estate agent claim. If you face a claim made against the bond that you disagree with, you can challenge that claim regardless of whether the loan has been repaid in full.

Who Are Eligible?

Rentstart Bond Loan is certainly not for everyone. To be eligible, you must:

  • be an Australian citizen or permanent resident.
  • be a resident in New South Wales.
  • have less than $3,000 cash.
  • have been approved for a rental property.
  • If you have already moved into your rental property, you are not eligible for a Rentstart Bond Loan.

Required Documents

To prove that you meet those criteria, you must have the following evidence.

  • Proof of current assets
  • Proof of citizenship
  • Centrelink number, Medicare Card or Drivers License
  • Proof of income

People’s Interest in Rentstart Bond Loan

You might be now wondering if this government support is a popular option that many people select. If people keep showing an interest in this government support, this is likely to mean that people heard good things about this policy and start searching about the government bond loan. One good place to find and measure people’s interest is Google Trend.

Google keeps track of every search made on its portal website. Google Trend allows us to access its database to see how frequently a certain keyword was searched over the past. In our case, the keyword we want to find is Rentstart Bond Loan. I went to Google Trends to see the trend of Rentstart Bond Loan.

If you see the graph above, the trend started picking up after 2011. Overall, the trend shows that the level of interest has been on the rise, and it is likely to continue in the future. So, you are not alone and an actually growing number of people is having and will have an interest in this government policy.

How Much is Rent in NSW

The rent prices in NSW are the highest in Australia. According to this article, one bedroom apartment in Sydney ranges between $450 and $550 per week. And the range is pretty minimum. Two bedroom apartments start at around $650 a week minimum. If you have a family, you would want a bigger rent house and need to expect a higher rent cost.


The NSW government put this nice policy in place to support the people finding a way to afford a rental house. Please check your eligibility and if you think you are eligible, find the link below to start your application for a bond loan.

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