Renting in Victoria can be costly and many tenants struggle with upfront bond payments. To make housing more accessible the Victorian Government offers the Bond Loan Scheme. This program provides interest free loans for eligible tenants to cover rental bonds. Here is everything you need to know about applying and qualifying in 2025.
What Is the Victoria Bond Loan Scheme
The Bond Loan Scheme is a government program that helps tenants pay their rental bond. Instead of paying four weeks rent upfront you receive an interest free loan from the government. The loan is lodged with the Residential Tenancies Bond Authority RTBA as your bond.
Why the Scheme Exists
Many tenants in Victoria live on low or moderate incomes. Paying rent plus a large bond at the same time can be impossible. The scheme ensures tenants can secure a home without falling into debt. It is designed to reduce housing stress and provide fair access to rental homes.
Read More: Bond Assistance Loans in NSW 2025 Complete Guide for Tenants
How Much Can You Borrow
- The maximum loan usually covers up to four weeks rent
- The exact amount depends on the rental price of the property
- The loan is paid directly to the RTBA and recorded in your name
Who Qualifies for the Scheme
You may be eligible if you meet these conditions
- You live in Victoria and plan to rent privately
- You are 18 years or older or supported by a guardian
- You have low income or receive government benefits
- You have limited savings and assets
- You do not owe money from a past bond loan or you are making repayments
Properties That Qualify
Not every property is covered. To qualify the property must
- Be in Victoria
- Be used as your main home
- Have rent that falls within program limits set by the government
How to Apply Step by Step
- Collect documents such as proof of identity income statements and rental details
- Complete the online application form on the official housing website or visit a local housing office
- Submit your documents with the form
- Wait for assessment which usually takes a few business days
- If approved the bond is paid directly to the RTBA as your bond contribution
Repayment Rules
- The loan is interest free
- You repay in affordable instalments agreed when you sign the loan
- If you leave the property and no claim is made the bond refund goes back to the government to close the loan
- If a claim is made you may still need to repay the balance if the bond refund is not enough
What Happens If the Bond Is Claimed
If your landlord claims part of the bond the RTBA processes it. Any refund goes to the government first to pay off your bond loan. If the refund is larger than the loan balance you receive the difference. If the refund is smaller you continue repayments until the loan is cleared.
Situations Where You May Be Refused
You may not be approved if
- Your income or assets are too high
- You owe debt from a previous bond loan without making repayments
- The rent of the property is above the allowed program limits
Benefits of the Scheme
- No interest or hidden fees
- Direct payment to the RTBA for security
- Fast approval times to help you move quickly
- Makes private rental more accessible for tenants with low income
Questions and Answers
Q How long does approval take
A Most applications are processed within a few business days
Q Do I have to pay interest
A No the loan is interest free
Q Can I apply if I already had a bond loan
A Yes but only if you have repaid it or you are making repayments
Q What happens if I break my lease early
A The bond refund is used to repay the loan and you must keep paying if the refund is not enough
Q Can students apply
A Yes if they meet the income and asset limits
