FNB access bond and overpayments

DrJohnZoidberg said:
Can't say I've seen the same, at least not yet.

I've been pumping a lot more into my bond, basically any money that doesn't need to cover my debit orders go into there.
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Also never got an email and I move in and out a number of times a month.
 
doubletrouble said:
I have been paying extra into my FNB Flexi bond. this month I noticed my installment (debit order) was R400 less than normal. I reached out to the online chat and they said that the monthly installment will reduce as the outstanding balance is less. Is this correct? I thought the extra payment goes toward reducing the term?
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We paid off in under 8 years and installments kept on decreasing automatically at random intervals with term remaining the same. Having said that, keep on paying extra - it will definitely reduce total interest.
 
surface said:
We paid off in under 8 years and installments kept on decreasing automatically at random intervals with term remaining the same. Having said that, keep on paying extra - it will definitely reduce total interest.
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Thank you. this is exactly what is happening to me.
 
deweyzeph said:
I've never seen this with my FNB flexi bond and I pay in extra most months. The only time my debit order changes is when interest rates change.
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mine was the same. this is the first time that I noticed it, that's why I was a bit worried
 
doubletrouble said:
mine was the same. this is the first time that I noticed it, that's why I was a bit worried
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I wouldn't worry about it though. If it's just a few hundred rands then it's probably just them doing some sort of amortisation adjustment. It's just curious that some of us don't see it though.
 
Well, I have a paid up flexi bond registered in 2003. paid up in 2008, and kept open. It decreases R5000 per month (as in what I can borrow again, without ANY action). The nice part, my service fee is R5.70!

I am just keeping it open, for when elec costs hits the fan. Current rate prime less 2.5%

Rule 1 in life, use a flexi smartly.
Rule 2 in life : Never close a bond
 
zerocool2009 said:
Well, I have a paid up flexi bond registered in 2003. paid up in 2008, and kept open. It decreases R5000 per month (as in what I can borrow again, without ANY action). The nice part, my service fee is R5.70!

I am just keeping it open, for when elec costs hits the fan. Current rate prime less 2.5%

Rule 1 in life, use a flexi smartly.
Rule 2 in life : Never close a bond
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Just curious, assuming it was a 20-year bond, shouldn't the amount you can borrow again have decreased to 0 by 2023 when the 20 year period was over?
 
deweyzeph said:
Just curious, assuming it was a 20-year bond, shouldn't the amount you can borrow again have decreased to 0 by 2023 when the 20 year period was over?
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Yes, technically. But I resettled the term in 2010, and kept my same rate. My personal view, I paid costs to get a bond, resetting it is so easy. (I call it power in my hands, if needed).
 
zerocool2009 said:
Yes, technically. But I resettled the term in 2010, and kept my same rate. My personal view, I paid costs to get a bond, resetting it is so easy. (I call it power in my hands, if needed).
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Interesting. I'm in year 10 of my 20-year bond and I'm on track to fully pay it off (with extra payments) in the next year or 2. I would love to get access again to the full loan amount to maybe buy another property. What's involved in resetting it so you can fully access the full loan amount again?
 
deweyzeph said:
Interesting. I'm in year 10 of my 20-year bond and I'm on track to fully pay it off (with extra payments) in the next year or 2. I would love to get access again to the full loan amount to maybe buy another property. What's involved in resetting it so you can fully access the full loan amount again?
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Another rule, dont mix bonds when claiming interest. Rather keep the paid up bond open, and start another one.

You just tell the bank, you want to reset it, and then you move all your prepaid money out, otherwise they lock it in.

But its very simple.

Just a note, if you hit 7 years on your FNB flexi, they will cancel the flexi (and you need to enable it again).

That is for users who have 2 years left, and then buy a R2 000 000 car cash (its seen as reckless lending)
 
deweyzeph said:
Interesting. I'm in year 10 of my 20-year bond and I'm on track to fully pay it off (with extra payments) in the next year or 2. I would love to get access again to the full loan amount to maybe buy another property. What's involved in resetting it so you can fully access the full loan amount again?
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I accidentally dont ask me how reset it once.

I dumped in waaay more than the outstanding amount and when I removed the money it "reset" likely system glitch but it happened
 
zerocool2009 said:
240 months left on your fnb app ?
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nope but bond went from about 80% to 100% fully available capital just with the remaining term

bond had lets say

400k os I paid in 200k then realised I overpaid, pulled out 200k and it reset to 1m the original amount something along these lines
 
deweyzeph said:
Interesting. I'm in year 10 of my 20-year bond and I'm on track to fully pay it off (with extra payments) in the next year or 2. I would love to get access again to the full loan amount to maybe buy another property. What's involved in resetting it so you can fully access the full loan amount again?
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Use of access bond to secure another house seems great idea but if you have only 8 years left in access bond, then you will have to settle it within those 8 years and then installment is quite hectic for obvious reasons.

Plus, you won't be able to deduct interest portion if loan is used for other house. I know some people do this but I was advised against by one of the guy in SARS.
 
surface said:
Use of access bond to secure another house seems great idea but if you have only 8 years left in access bond, then you will have to settle it within those 8 years and then installment is quite hectic for obvious reasons.

Plus, you won't be able to deduct interest portion if loan is used for other house. I know some people do this but I was advised against by one of the guy in SARS.
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That is why I said, rather keep the books clean, and start another bond. It might be seen as money lost, but that bond is purely for rentals. I have also seen this before. And sadly, SARS always win that fight!
 
surface said:
Use of access bond to secure another house seems great idea but if you have only 8 years left in access bond, then you will have to settle it within those 8 years and then installment is quite hectic for obvious reasons.

Plus, you won't be able to deduct interest portion if loan is used for other house. I know some people do this but I was advised against by one of the guy in SARS.
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MMM

Although its messy I always claim all bond interest for all crypto trades zero issues with any submissions I have ever made.
 
Snyper564 said:
MMM

Although its messy I always claim all bond interest for all crypto trades zero issues with any submissions I have ever made.
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You lost me as I have no idea how home loan bond interest is related to crypto trades.
 
surface said:
You lost me as I have no idea how home loan bond interest is related to crypto trades.
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Ok

You are allowed to claim any interest related to trade.

My trade is trading crypto - I pull money from my bond to trade I claim the interest.

I have clearly indicated the separation of "trade" interest and non-trade interest and only claim interest related to the trade.

Zero issue been doing it for years.
 
Snyper564 said:
Ok

You are allowed to claim any interest related to trade.

My trade is trading crypto - I pull money from my bond to trade I claim the interest.

I have clearly indicated the separation of "trade" interest and non-trade interest and only claim interest related to the trade.

Zero issue been doing it for years.
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Aren't you supposed to ring fence rental income and expenses from other trades though?
 
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