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Rental bond loans

You find the right place, and you can afford the rent, now you just have to find the bond money.

⚠️ Warning: Be cautious with short-term loans

If you're experiencing financial hardship and would like to speak to someone for free financial counselling, you can call the MoneyTalks helpline operated by FinCap on 0800 345 123. It is open from 8am to 5pm, Monday to Friday, and 10am to 2pm Saturday. When comparing short-term loans, ensure you take into consideration any fees, charges and rates you may be charged.

Alternatives to short-term loans

Consider these alternatives before applying for a payday loan:

  • Use online Government resources. The Commerce Commission New Zealand website explains how loans work and what to be aware of when borrowing from a lender.
  • Payment plans. Talk to your electricity, gas, phone or water provider to see if you can work out a payment plan or receive an extension on your due date if you’re behind on payments.
  • Contact your creditors. Speak with creditors about extending the due date of your payment, or working out a new payment plan that works for both of you. Seek personal loans elsewhere. Consider a small personal loan from a bank or a credit union. You may qualify for a loan with much lower interest rates than those offered by payday loan companies.
  • Pay with credit card. Consider paying with your credit card to cover your emergency bills or payments. This is not a long-term solution, as you’ll need to pay off the balance as soon as possible, but it’s an alternative to a short-term loan with high – and immediate – interest rates.
1 - 2 of 2
Name Product Max Loan Amount Loan Term Turnaround Time Loan Interest Establishment Fee Account Administration Fee
Save My Bacon Flex Loan
$5,000
12 - 36 months
Same day
49.95% p.a
$125
$4 per month
Eligibility: Be 18 or over, have an income of at least $400 per week and be a NZ citizen, permanent resident or have a valid work visa.
Medium term loans from $2,000 to $5,000 with no hidden fees.
Moola Loan
$1,500
92 - 184 days
Often available in under 60 minutes
292% p.a.
(fixed for the term of the loan)
$0
N/A
Eligibility: Be 18 or over, be in employment and be a New Zealand citizen, permanent resident or have a valid working visa.
Borrow up to $1,500 and enjoy a flexible repayment plan.
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Compare up to 4 providers

Finding a place to rent can be difficult, but it is only half the battle. Once you see a property, you need to think about the price of moving and buying new furniture or storage boxes.

One of the most expensive costs on the list, which new tenants sometimes forget, is finding money for the rental bond.

What is a rental bond?

A rental bond acts as a security deposit for the property you propose to rent.

This deposit is held for the entire time you are renting and is reimbursed when you move out, as long as there is no damage to the property. If there is damage, the owner will use all or part of the deposit to pay for the repairs.

Rental bonds vary, but usually, it is the price of between one and four weeks rent.

What are my finance options?

If you need financial help to pay your bond, you have a few choices available:

  • Credit card. If you have enough of a credit limit on your card, you can use it to pay for your bond. Take note of whether the credit card company will charge you the purchase or cash advance interest rate and calculate your repayments before you settle the bond. Some agents may not accept payments via credit card, so this may not be an option in all situations.
  • Personal loan. An unsecured personal loan may be an option. Some lenders, such as ANZ, offer same-day personal loans if you need the money quickly. The interest rate on a personal loan tends to be lower than a credit card, and you may have access to more features, such as repayment flexibility.

Comprehensive guide to personal loans

  • Short-term loan. Short term loans are designed to cover you until your next payday. They are usually between $100 and $2,000 and are paid back within two days and one year, with the repayments generally lining up with your pay frequency. If you have bad credit and can’t access other forms of finance, then you may want to consider a payday loan.
  • Government assistance. You may be able to get help to pay your rental bond from Work and Income if you are on a lower income. Call 0800 559 009 to see if you can apply.

How to compare rental bond cash loans

Before you take out any loan, it’s essential to consider your options and make sure you choose the best one for you. Here are a few things to bear in mind when comparing rental bond loans:

  • Fees. Before you apply, you should take a look at all the costs associated with the loan. This include fees you will have to pay, such as loan establishment, annual, or early repayment fees.
  • Interest rates. The interest rate is also something that can add significantly to the cost of the loan. You should also check whether the lender is providing the rate as an introductory offer.
  • Repayment flexibility. Depending on the bond loan you choose, you may be able to select weekly, fortnightly or monthly repayments. Some lenders may also offer the option to make additional repayments.

What should you consider before applying for a loan to pay a rental bond?

When considering a personal loan, you need to take into account your financial situation and your ability to pay it back. While borrowing money for a bond may seem affordable, you also need to remember the additional costs that may come with moving house and take this into account when deciding how affordable the repayments are.

What are the risks of rental loans?

  • Unreputable lenders.Check the lender has a credit licence and is easily contactable. You can also check if it is registered with the Financial Markets Authority.
  • Unaffordable repayments.Consider the size of the regular repayments and ensure the loan is able to be repaid during the loan term. If not, extra fees apply to extend it. Be careful, since repayment periods for these kinds of loans tend to be shorter than regular loans.
  • Multiple applications.Every loan application shows up on credit reports. While lenders might not consider credit history, several applications within a short period can have a negative impact on your credit score moving forward.
  • Check rates and fees.Be crystal clear on what will be charged for late payments or a default on the loan. The total cost of the loan matters here – lenders can charge interest rates on top of everything else.
  • Long-term repercussions and legal issues.Once the loan agreement is signed, the customer is bound to its conditions until the loan and any associated rates and fees have been paid. Typically these loans are unsecured, which means that the lender can initiate legal proceedings against the customer if they can’t repay.

How to apply for a rental bond loan

If you’re interested in applying for a rental bond loan, you can compare your options using the comparison table on this page.

Once you find a rental loan product you wish to apply for, just click “Go to Site” in our comparison table above, which will direct you to the lender’s website. From there, you can fill out an online application form.

Generally, you need to be:

  • over the age of 18,
  • a New Zealand citizen or permanent resident
  • receive regular pay into your bank account.

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