Who can apply
Applicants are usually 18 or over, although Homes NSW may consider someone aged 16 or 17 in some cases. The household needs to show it meets the rules for social housing as well as Rentstart. In short, the Homes NSW page lists these:
- eligible for social housing, and an Australian citizen or permanent resident
- within the income and assets limits for the household, with cash savings under $5,000
- no full or part ownership of property, apart from some exceptions
- already approved for a private rental home, with rent of no more than 60% of what the household earns each week before tax
For people experiencing domestic or family violence, the usual social housing income rule is set aside. If the rent is above the 60% mark, the policy asks the applicant to show they can still meet reasonable living costs, keep up the loan repayments, and are likely to hold the tenancy for at least 12 months.
How much it covers
Homes NSW can lend up to the whole bond. A borrower may take less, but the loan has to cover at least a quarter (25%) of the bond. Each household gets one bond loan, and when more than one adult lives there, only one of them is named as the borrower and that person alone is responsible for repaying it. If the bond for that tenancy is already sitting with the Rental Bond Board, the loan is not available, so the timing matters.
From approval to the Rental Bond Board
Homes NSW pays the bond itself rather than handing the money to the tenant. Once a loan is approved, its page describes this order:
- Homes NSW fills in the formIt completes the Rental Bond form and sends it to the landlord or real estate agent.
- The landlord or agent signsThey sign the form and send it on to the Rental Bond Board.
- The bond is paidHomes NSW pays the bond money straight to the Rental Bond Board.
- Repayments beginFortnightly payments start once the bond has been lodged, and run until the loan is paid off.
If the landlord or agent has not lodged the Bond Lodgement form or Bond Barcode within 90 days, Homes NSW cancels the bond assistance.
Paying it back
The length of the repayment plan depends on how much of the household’s income goes on rent. The policy sets it out like this:
| Share of income spent on rent | Length of plan |
|---|---|
| Under 45% | 12 months |
| 46% to 60% | 18 months |
| Over 60%, in exceptional cases | Up to 36 months |
Each fortnightly payment is the loan divided by the number of fortnights in the plan, rounded up to the next whole dollar, with a floor of $10 a fortnight. The policy’s own examples count two payments for each month of the plan: a $1,200 loan over 12 months comes to $50 a fortnight.
Worked example, using the policy’s method
A $1,450 bond loan. The amounts are illustrative, worked out with the rounding and the $10 floor the policy describes.
- Over 12 months: $1,450 ÷ 24, rounded up
- $61
- Over 18 months: $1,450 ÷ 36, rounded up
- $41
- Over 36 months: $1,450 ÷ 72, rounded up
- $21
- A $300 loan over 18 months: $300 ÷ 36 is about $8.33, under the floor
- $10
People who receive Centrelink payments repay through the Bond Loan Deduction Scheme, which takes the amount from each fortnightly payment automatically. Others can use BPAY, online banking or the MyHousing app. Extra payments can be made at any time, but if the account goes into credit, the extra is not refunded until the loan has been fully repaid and closed.
When you move out
If the loan has been repaid in full, the bond is dealt with in the usual way at the end of the tenancy. If some of the loan is still owing, Homes NSW may first take what is owed from the tenant’s share of the bond, and anything left over can be returned.
The policy fills in the detail. Homes NSW keeps an interest in the bond until the loan is repaid. When a tenancy ends early, the Rental Bond Board returns Homes NSW’s share to it, and Homes NSW refunds any loan payments the landlord or agent did not claim. If the landlord’s claim is larger than the amount repaid so far, the gap becomes a former bond loan debt owed to Homes NSW.
If payments get hard
The policy says Homes NSW can offer a longer plan, pause payments for a time, or change the amount, and it asks borrowers to get in touch as early as they can.
A second bond loan inside 12 months is possible when the first was repaid before that tenancy ended, or when repayments on the current one are up to date. In exceptional circumstances Homes NSW may approve one anyway, capped at half the bond.
Rentstart also covers other help. For example, people staying in Temporary Accommodation or specialist homelessness accommodation who find a private rental and are approved for a bond loan may also get two weeks of Advance Rent, which is a grant and is not repaid.
Applying
Homes NSW describes the online form as the quickest way to apply. The Housing Response Centre takes applications and questions by phone on 1800 422 322, Monday to Friday, 9.00am to 5.00pm, and a paper form can be emailed to the local Housing office. After an application goes in, Homes NSW says it sends updates by email and text and allows changes to the form for up to 14 days.
No Interest Loans, a separate scheme that includes a loan for a rental bond, are covered in ticket 04, on No Interest Loans.