Access bond cancellation fees ?

[Sideshow Bob]

My google-fu skills seem to be lacking and I can't seem to find cost related to this. We paid it off and haven't needed for last few years. I was thinking of using 120K of it to build swimming pool but on second thoughts, it doesn't seem like a good idea to get into debt again, even for a short while.

What are the fees if given 90-day notice? Is it 1% of bond as one article seems to suggest ?

 

[B-1]

My google-fu skills seem to be lacking and I can't seem to find cost related to this. We paid it off and haven't needed for last few years. I was thinking of using 120K of it to build swimming pool but on second thoughts, it doesn't seem like a good idea to get into debt again, even for a short while.

What are the fees if given 90-day notice? Is it 1% of bond as one article seems to suggest ?

If I remember correctly its based on outstanding amounts over the last 3 months before canceling. I also paid up a bond in full waited 3 months then cancelled and the penalties were minimal. But I'm sure a call to your finance provider will tell you what's the penalties will be.

 

[Azbubu]

What happens if it’s paid off and just left open indefinitely?

 

[Sideshow Bob]

What happens if it’s paid off and just left open indefinitely?

Interesting question. I can only imagine that it will not be allowed to be "accessed" after its period (ours is 20 year) lapses ? I guess bank will continue to charge monthly fee till you ask for termination.

 

[B-1]

What happens if it’s paid off and just left open indefinitely?

You just pay the admin fees until the term is up where the final debit order will take place.

 

[Sideshow Bob]

You just pay the admin fees until the term is up where the final debit order will take place.

I am still paying admin fees when outstanding amount is 0. I have put a scheduled transfer of 70 rands so that it stays 0. I think he meant after mortgage period expires ?

 

[Azbubu]

I am still paying admin fees when outstanding amount is 0. I have put a scheduled transfer of 70 rands so that it stays 0. I think he meant after mortgage period expires ?

I meant paying it off early and not closing it.

 

[Sideshow Bob]

I meant paying it off early and not closing it.

ok. Then, I am continuing to pay admin fees after paying offf early. Fees comes off the bond and then I have a scheduled transfer that settles it on last day of month so that I don't pay any interest. I have to adjust scheduled transfer a bit every year if admin fee changes.

 

[saturnz]

there are no cancellation fees, or atleast there wasn't when I settled my bond- just some legal letter that I paid for which was around R1500

the issue is when you are selling the property and want to cancel the bond

 

[Sideshow Bob]

there are no admin fees, or atleast there wasn't when I settled by bond

the issue is when you are selling the property and want to cancel the bond

There are admin fees to access bond. Your must be ancient bond (pre 2000 ?).

 

[saturnz]

There are admin fees to access bond. Your must be ancient bond (pre 2000 ?).

rectified the wording

 

[Stonemason]

The cost is actually the lawyers fees to cancel the bond on your deed. Last I saw it was about R3000 to R6000

 

[Sideshow Bob]

The cost is actually the lawyers fees to cancel the bond on your deed. Last I saw it was about R3000 to R6000

Thanks, sounds better. I was dreading of forking out 20K. I will find out and post here.

 

[zerocool2009]

It all depends with who do you bank

If paid up, fnb dont charges fees, you just need to do the legal side (as in pay for that)

Why do you want to close a paid up bond?

 

[zerocool2009]

What happens if it’s paid off and just left open indefinitely?

I have that ! have a nice R0 balance and a monthly fee of R5.70 on my bond !

The "power" of an access/flexi bond is AWESOME (use it smartly)

 

[zerocool2009]

There are admin fees to access bond. Your must be ancient bond (pre 2000 ?).

Its not admin fee for the access bond ! L O L

Its the admin fee for the facility (as in the FULL bond).

 

[Sideshow Bob]

It all depends with who do you bank

If paid up, fnb dont charges fees, you just need to do the legal side (as in pay for that)

Why do you want to close a paid up bond?

FNB charges fees even if paid up (see below my statement snapshot). Maybe if you have some platinum/ebucks / private account, they waive the fees?



We haven't used it for anything. There is temptation to buy another property using that bond but I won't be able to claim the interest as loan wasn't taken for my current property. Also, property market (close to us) is hardly returning 1.5% year on year and rental income is meh.

 

[Sideshow Bob]

Its not admin fee for the access bond ! L O L

Its the admin fee for the facility (as in the FULL bond).

Monthly fee, ok ?

 

[zerocool2009]

FNB charges fees even if paid up (see below my statement snapshot). Maybe if you have some platinum/ebucks / private account, they waive the fees?

View attachment 1196316

We haven't used it for anything. There is temptation to buy another property using that bond but I won't be able to claim the interest as loan wasn't taken for my current property. Also, property market (close to us) is hardly returning 1.5% year on year and rental income is meh.

Any bank would charge that fee, as its a "service", if you use it or not.

I would personally never close a bond (you never know when you might need money for something).

You paid thousands to get it. I am sure you can offset R60 a month via rewards or interest.

If you think its not worth having, inform the bank, close it, do the legal side and get the paper !

 

[Cius]

The cost is actually the lawyers fees to cancel the bond on your deed. Last I saw it was about R3000 to R6000

This. Closed off my bond 2 years ago and besides the outstanding balance the only other cost was paying the lawyers about R3500 I think it was to do the paperwork at the deeds office to say I am full owner and the house is not bonded.