REIWA CEO Cath Hart has welcomed the State Government’s move to ease financial pressure on tenants by increasing the income and asset limits for the Bond Assistance Loan Scheme.
The Department of Communities offers up to four weeks rent as bond assistance and two weeks rent in advance as an interest-free loan to help eligible tenants get accommodation in the private rental market. Maximum loan amounts depend on an applicant’s individual circumstances.
The income and asset limits and maximum bond loan levels have been increased, ensuring more people will be able to borrow a greater percentage of the total bond required.
“High demand and low supply in the rental market is seeing rents rise and this means bonds also increase,” Ms Hart said.
“This puts extra financial pressure on tenants seeking a private rental. It can be even more challenging for tenants who are moving from one property to another and having to pay bond and two weeks rent in advance for their new home while potentially waiting for their previous bond to be released.
“The changes to the scheme bring the limits in line with current market conditions and will give more people access to the funds they need to secure a rental property.”
The changes see weekly income limits increase by between 30 per cent and just under 50 per cent for all household types. The maximum bond loan amounts have increased by up to nearly 70 per cent, depending on household type and location.
There has also been a 100 per cent increase in the asset limits for all household types; singles, single people with dependents, and couples with or without dependents.
To assess eligibility criteria applicants should undertake a Housing Options Assessment. More information on the scheme, including income and loan limits, can be found here.
Sourced from REIWA