FNB access bond and overpayments

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deweyzeph

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I've got an FNB access bond on a house that I bought about 5 years ago. One of the reasons I wanted an access bond was so that I could use it as a savings account by paying in extra payments every month and reducing my interest payable every month. It works great, however I did a recon the other day of all the extra payments I've made in my home loan account, and I've noticed that the "Available Balance" that shows up in my online banking profile for my home loan is more than the extra payments I've made over the last 5 years. Anyone know how this is possible or how it works? My understanding was that the "Available Balance" on your access bond was the amount available to you to withdraw, i.e. the total of all the extra payments you've made over and above the monthly debit order that comes off every month. So how is it possible that I could potentially withdraw more money from my access bond than the extra payments I've made over the years? Surely the "Available Balance" should match exactly the amount of overpayments you've made?
 
Maybe the interest saved? I'm just guessing here, don't know for sure.

If you leave R100k in there for one year, and your interest rate is 10%, maybe they give you R110k available at the end of the year (I've ignored compounding).
 
3WA said:
Maybe the interest saved? I'm just guessing here, don't know for sure.

If you leave R100k in there for one year, and your interest rate is 10%, maybe they give you R110k available at the end of the year (I've ignored compounding).
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Maybe, but I think the interest you save is already factored into the interest charge that appears in your statement. I.e. they just charge you interest on the reduced balance already factoring in the extra payments you've made. Who knows. I already tried phoning FNB to ask but they couldn't give me a straight answer.
 
Your question is complicated, or rather the answer.

FNB Homeloans have a different flexi products (homeloans), as time goes buy and they re-invent something "new".

How i see it, if you bond is 5 years old, its actually very simple.

After a debit order goes off, the funds are locked in, but after 7 days, you will see the amount shows up in the available balance, so you can borrow against the money paid (via debit order).

Another thing, all prepaid money is available.

So, to answer your question, you can borrow against your debit order again, that is why it more than what you paid
 
Do yourself a favor ...

If your debit order went off ... Wait 5 to 7 days and monitor that "Available Balance". You will see a big % of the debit order is available, where you can borrow against if needed.

PM me if you need more info or something is unclear
 
zerocool2009 said:
Do yourself a favor ...

If your debit order went off ... Wait 5 to 7 days and monitor that "Available Balance". You will see a big % of the debit order is available, where you can borrow against if needed.

PM me if you need more info or something is unclear
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The thing is that the difference between my available balance and the amount of prepaid funds I've deposited is much more than my monthly debit order. I am aware of the "Available Balance" changing every month around the time my debit order goes off. But even after those funds are unblocked the difference is still bigger.
 
So your bond is R1 million, repayment amount of R10 000 a month, you pay in R12 000.
Your "new" amount is actually now R9 999 so when you pay in R12 000 again you're actually adding in an extra R2 001, not R2 000. That's the way I understand it.
 
Correct ... but from that R10 000 paid (thumb suck another R6000 would be added to your available amount)

I am doing all my bond payments manually. If you need help, PM me please
 
Reading your question now again: answer is yes, you can withdraw more than what you have prepaid
 
So, our loan is completely paid and I can see there is money in home loan bank account and is available via access bond. Any idea what would be the fees like if I transfer a chunk of it for some other purposes? FNB site says 0.55% with a max of 575 rands like that but has someone tried recently?
 
surface said:
So, our loan is completely paid and I can see there is money in home loan bank account and is available via access bond. Any idea what would be the fees like if I transfer a chunk of it for some other purposes? FNB site says 0.55% with a max of 575 rands like that but has someone tried recently?
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If you move R1 or R500 000 or R10 000 000 out, its costless as in free.

Your repayment would be recalculated then
 
zerocool2009 said:
If you move R1 or R500 000 or R10 000 000 out, its costless as in free.

Your repayment would be recalculated then
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oh wow. Thanks, I didn't know that. I would have thought there would be some fees involved. Let me try that.
 
zerocool2009 said:
I am doing all my bond payments manually. If you need help, PM me please
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Benefits of this ? correct me if i am wrong...as far as I understand, bond is compounded daily.

if the monthly repayment is 10k , paying 2.5k weekly will save you a decent amount at the end of the term.
 
Ri@@d said:
Benefits of this ? correct me if i am wrong...as far as I understand, bond is compounded daily.

if the monthly repayment is 10k , paying 2.5k weekly will save you a decent amount at the end of the term.
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Correct! Been doing this since 2003 actually! The savings are huge!
 
What happens when you pay extra into your access bond and the total amount due becomes zero before the end of your term? Does the bond just remain with zero month payment required (other than a fee) or does FNB close it automatically?
 
JacquesD said:
What happens when you pay extra into your access bond and the total amount due becomes zero before the end of your term? Does the bond just remain with zero month payment required (other than a fee) or does FNB close it automatically?
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FNB didn't close ours yet and it has been a while since we paid it off. I have a monthly R57 (or something like that) scheduled transfer to access bond account which nullifies the fee that they deduct from it every month.
 
zerocool2009 said:
Correct! Been doing this since 2003 actually! The savings are huge!
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how does one get the bank to do this ? (surely some default payment is required? )

I have a monthly debit, I then put in a little extra as the month goes on
 
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