BONDSURE announces the launch of an innovative new financial product that provides renters with an option to pay rental bonds off in instalments while helping them to protect these bonds for the first time through a revolutionary new type of insurance.
Tenants can apply online to have rental bonds up to $5,000 paid on their behalf by BONDSURE, to be repaid over 6 or 12 months, while maximising the chances of their bond being returned through Australia’s first optional bond insurance which provides cover up to the bond amount for the most common areas of bond dispute, accidental damage and additional cleaning charges.
BONDSURE is the creation of Australian lawyer and insurance entrepreneur, Michael Wood, who is well known for disrupting the insurance industry in the United Kingdom through the launch in 1997 of ‘PI Direct’, an underwriting agency that reduced professional indemnity premiums through a unique distribution and claims handling model, which was acquired by Royal Sun Alliance for nearly $100 million in 2006.
“Paying a bond can be an untimely nuisance for tenants, tying up money at the start of a rental period when many people would prefer to spend money on other things,” said BONDSURE Chairman, Michael Wood.
“Recouping bonds can also be a real nightmare for some tenants when accidents or disputes over cleaning put the bond in jeopardy.
“BONDSURE aims to help address these issues by providing consumers with a viable alternative to paying a bond by cash or credit card, and is the only product on the market that helps tenants protect their bonds against financial erosion,” said Michael Wood.
The bond can be taken without the insurances and the insurances without the bond. The insurance can be continued if the lease runs longer than 12 months.
“BONDSURE is a compelling alternative to Payday Lenders which we believe have been exploiting the residential bond market by offering loans to consumers with comparison rates of over 150% and repayment terms as small as four weeks in some instances,” continued Michael Wood.
On an average $1,000 loan over 12 months, BONDSURE charges an annual percentage rate of 16% (fees and charges apply) and the bond insurance costs $18 per month. Tenants pay the bond, insurance premiums, interest and fees back to BONDSURE in fortnightly or monthly repayments, with the full bond being able to be returned at the end of the lease if there is no claim against it through a breach of the lease.
The insurance angle extends further with optional tenant’s contents insurance.
The former General Manager of CENTURY 21 Australia, Paul Mylott, has been appointed CEO of the business and has been tasked with utilising his extensive real estate network to drive distribution of the product while managing the roll-out of digital, sales and television campaigns aimed at driving customer demand.
“We believe that the insurance component of BONDSURE will lead to less bond disputes for tenants, property managers and landlords and can drive new business for BONDSURE approved real estate offices as the product becomes accepted and tenants are increasingly drawn to the offering,” said Paul Mylott.
Data from the Australian Bureau of Statistics suggest that 31% of all Australian households are renting and many believe this figure will only increase in the future.
“BONDSURE utilises leading identity and credit check providers and an online credit worthiness assessment to qualify BONDSURE approved tenants, which is an aspect of the product that we expect will be warmly received by landlords,” said Paul Mylott.
“Estate agents need only register once with BONDSURE, providing bank details for the bond transfer, and then check the rental address inserted on the BONDSURE site at the time of signing the lease. Otherwise it’s all done by the tenant and BONDSURE.
“We hope BONDSURE will be perceived as a win-win-win for landlords, real estate offices and tenants alike,” concluded Paul Mylott.
Prospective tenants and real estate groups are encouraged to visit www.bondsure.com.au to find out more.
The comparison rate is 35% calculated based on a $1,000 loan for 6 months. Fees and charges are payable. The comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.