Paid up access bonds

zerocool2009 said:
With who is that bond ? Lets say you have 6 months left, and withdraw the full amount. The bank can get a fine for reckless lending
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It's an Access Bond with Standard Bank for R350000, taken out in 2006. Took R101k out last month, balance is currently R96k and it shows I have R254k available to withdraw.

Would be interesting to see if I actually tried to withdraw that R254k it says is available, but I'm not quite that crazy. Did take out R155k to install solar around 2 years ago with no issues.
 
Icarium said:
It's an Access Bond with Standard Bank for R350000, taken out in 2006. Took R101k out last month, balance is currently R96k and it shows I have R254k available to withdraw.

Would be interesting to see if I actually tried to withdraw that R254k it says is available, but I'm not quite that crazy. Did take out R155k to install solar around 2 years ago with no issues.
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Aaah, ok, so that's a relatively small bond then. 2 years to repay the full amount if you were allowed to draw down the entire amount doesn't seem so unreasonable. I was thinking more in terms of a multi-million rand bond.
 
Icarium said:
It's an Access Bond with Standard Bank for R350000, taken out in 2006. Took R101k out last month, balance is currently R96k and it shows I have R254k available to withdraw.

Would be interesting to see if I actually tried to withdraw that R254k it says is available, but I'm not quite that crazy. Did take out R155k to install solar around 2 years ago with no issues.
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come on .. you can do it ! Go the max (and test the system) !
 
Hello everyone,

Having consulted with a financial advisor a while ago, my mind is made up in terms of wanting to pay off my bond ASAP.

I see no reason in trying to save money whilst I'm in debt. The tax benefit loss is less than the interest accrued monthly, so I see no reason to extend the repayment period unnecessarily.

I'm fairly certain that I'm going to keep the access bond running indefinitely at this point.

What I'd like to know is if the three months advance notice to avoid punitive measures requirement applies to the amount owing or to he bond?

I'm aware that that reads odd, so allow me to rephrase.

For example, I decide that I want June to be my goal for paying the final amount owing on my bond, my monthly instalment is R10k, and I owe 35k. I elect to keep the access facility open beyond this point.

Do I need to notify the bank that I expect to make the final payment in June, noting that it is less than the fixed instalment, or do I do nothing in terms of notification and just keep on paying until the amount hits 0.0 because the access facility will run on beyond June?

I did visit the branch and jump onto the phone to speak to the Home Loans department, however I'm not sure that the individual on the other end actually understood what I was trying to convey, across a rather awful line.

Thanks.
 
Merlin said:
Hello everyone,

Having consulted with a financial advisor a while ago, my mind is made up in terms of wanting to pay off my bond ASAP.

I see no reason in trying to save money whilst I'm in debt. The tax benefit loss is less than the interest accrued monthly, so I see no reason to extend the repayment period unnecessarily.

I'm fairly certain that I'm going to keep the access bond running indefinitely at this point.

What I'd like to know is if the three months advance notice to avoid punitive measures requirement applies to the amount owing or to he bond?

I'm aware that that reads odd, so allow me to rephrase.

For example, I decide that I want June to be my goal for paying the final amount owing on my bond, my monthly instalment is R10k, and I owe 35k. I elect to keep the access facility open beyond this point.

Do I need to notify the bank that I expect to make the final payment in June, noting that it is less than the fixed instalment, or do I do nothing in terms of notification and just keep on paying until the amount hits 0.0 because the access facility will run on beyond June?

I did visit the branch and jump onto the phone to speak to the Home Loans department, however I'm not sure that the individual on the other end actually understood what I was trying to convey, across a rather awful line.

Thanks.
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Penalties only apply if there is an amount outstanding at the time that you cancel the bond. There is no penalty for paying off your bond early and still keeping the facility open.
 
Merlin said:
Thank you for the speedy replies, dewey and zero.

Fok. 7k just to close up and get one's deed? What a bloody racket.
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Sadly, its reality. You paid to get the facility. So consider to keep it open, even if you owe R0 on the bond
 
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