What Can I Spend My Bond Loan On?

Moving into a new home, whether you’re own or a rented property is a dream that many individuals have but only a few can fulfill. The reason is simply; the lack of funds at the hands of the individuals, which forces them to keep their dream under wraps. However, a bond loan is a feasible solution to this problem.

If you have found your dream home and are contemplating moving into it, you can apply for a bond loan, which is a loan that can be taken to pay the bond for the house. Bond loans are loans which do not carry any interest and they can be used to pay the rental bond loan, which is required to acquire the housing property.

The housing bond loans taken for the purpose of an acquiring residential property is the best option for individuals, who are short on cash. An individual can apply for the government bond loan or take the bond loans from private financial institutions. The government bond loans can be taken only after strict eligibility criteria are met and a number of forms and applications are filled. In such a case, those individuals, who are in immediate need of cash, opt for private lenders. There are several private financial lenders, who offer the bond loans at nominal fees.

The bond loans can be used to acquire rental property or a flat, as well as managing the relocation expenses that occur during the process of moving to the new property. Individuals may use their housing bond loan to cover costs including rental bonds, rental money advance and credit on furniture and other white goods.

Often there are times when bond loans are needed when there is a sudden or unexpected call to relocate to a new place. This can be a panic situation for those individuals who might not have saved money for such a purpose. Here again, the bond loans come to the rescue, as individuals can use the bond loan to take a rented property in the new destination.

To be Eligible for a bond loan, the lender must meet the below criteria:

1. The individual must be a citizen of Australia
2. You must not own any residential property
3. The fees applicable on the new house or flat taken should not be more than 60% of the weekly income of the household

With these and other eligibility criteria native to a particular lender, one can easily acquire a housing bond loan within no time.

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