Bond Advice

[yewols]

Hi All

I'm new to the forums; hoping to be able to get some advice re my current bond with Standard.

I have had the bond for over 2 years; the bond was taken out with my Mom due to our then current financial standing. I wish to take full responsibility for the bond now and also want to change banks to endeavour to get a better interest rate (they hiked it up because of her age -over 65). She will continue to pay her share of the Bond, it's more to get all her finances streamlined as the years pass by there's less for her to have her name on and worry about etc.

I am aware I have to do a substitution of debtor. Do I have to do this with Standard before moving the bond else where as I know then I have to do a whole new application or can I do it as if I'm just buying the house over if I move to say FNB?

TIA

 

[roddyp]

i suggest chatting a to a bond originator. There are quite a few out there and i'm sure they will be able to assist.

http://www.property24.com/articles/...nFUnYHJon5d75-7YOiwBso8XxH3kgvF-RJBoCMIzw_wcB

 

[Bearded Delight]

Was really looking forward to someones opinion on James Bond movies.

 

[droidx]

I'm also interested in this. Was your mom's name on the tootle deed as well? If so are you changing that too or only the bond?

 

[yewols]

I'm also interested in this. Was your mom's name on the tootle deed as well? If so are you changing that too or only the bond?

Yes on deed and bond. Eventually I'd like to ensure nothing is in her name.

 

[Purply]

Yes on deed and bond. Eventually I'd like to ensure nothing is in her name.

Pretty sure you'll have to pay transfer duties then, unless it falls under the minimum no charge bracket.

 

[yewols]

Pretty sure you'll have to pay transfer duties then, unless it falls under the minimum no charge bracket.

Not worried about transfers duties, almost on cusp so will be min anyways. I want to know if I can avoid jumping through 3 or 4 hoops and go direct to another bank avoiding this whole substitution of debtor thing

 

[HapticSimian]

I'm also interested in this. Was your mom's name on the tootle deed as well? If so are you changing that too or only the bond?

Heh. Tootle deed. No advice to offer, but that did give me a giggle. Not a word you see often, and it always reminds me of the owner's manual from a Korean cabbie my dad had many moons ago. Said manual advises that, if a pedestrian wanders into your path, you 'tootle him lightly' with the hooter. If he doesn't react, you should then 'tootle him with vigor'.

 

[heartbroken]

Not worried about transfers duties, almost on cusp so will be min anyways. I want to know if I can avoid jumping through 3 or 4 hoops and go direct to another bank avoiding this whole substitution of debtor thing

Going to another bank I cannot see how this has anything to do with the old bank. They will cancel their bond over the property and the new bank will do a new bond with whoever's name is on the application.

PRO TIP: Remember to give your old bank notice well before hand to prevent penalty interest (with ABSA that is 90 days)

 

[TofuMofu]

Going to another bank I cannot see how this has anything to do with the old bank. They will cancel their bond over the property and the new bank will do a new bond with whoever's name is on the application.

PRO TIP: Remember to give your old bank notice well before hand to prevent penalty interest (with ABSA that is 90 days)

This is how I see it as well.

The new bank will pay off the old bank, thus whatever they had will be null and void and you'll start a new bond with new details with your new bank.

 

[HapticSimian]

...

PRO TIP: Remember to give your old bank notice well before hand to prevent penalty interest (with ABSA that is 90 days)

Not just ABSA, and not just with a bond. Any credit agreement to a value greater than R250k allows the credit provider to charge a penalty of 90 days' interest if settlement is paid without notice given. Which is why you give 3 months' notice.

 

[droidx]

Heh. Tootle deed. No advice to offer, but that did give me a giggle. Not a word you see often, and it always reminds me of the owner's manual from a Korean cabbie my dad had many moons ago. Said manual advises that, if a pedestrian wanders into your path, you 'tootle him lightly' with the hooter. If he doesn't react, you should then 'tootle him with vigor'.

I don't even know why autocorrect would do that haha.
Didn't proof read that one.
Glad to have assisted with providing chuckles though :-D