Access Bond vs Paying Off Homeloan

[pozmans]

Does anyone know how keeping your access bond works? Do you just notify the bank that you want to pay off everything but still have the facility open or do you still have to keep a nominal balance?

 

[Cage Rattler]

For years I have just kept a balance of 1 cent owing.

 

[A3@MBB]

Keep a balance outstanding

 

[Mike Hoxbig]

Don't close it off. Consider it an emergency fund, you'll never get any loan at the same interest rate as your bond...

 

[CUZ_458]

Wont you have to pay the monthly service fee by keeping it open ?

 

[zerocool2009]

You can owe R0 on the outstanding balance. After a while, the account becomes dormant, and if you want to move money out, you need to phone the bank to activate it. That is the first thing

Secondly, your monthly service fee will still be applicable.

Lastly, if you dont plan renovations, a holiday... and anything like that, just cancel the bond. The cancellation fee also goes up yearly.