Taking a loan on your bond

G

grim101

Well-Known Member
Joined
Jun 25, 2013
Messages
360
Reaction score
68
I have debt of R250 000 of which I am paying around R8500 a month. Interest is 13 to 16% on the debt.

Have a bond that I have been paying off for 7 years now.

Is it possible to borrow money on the bond. The goal is to take a loan of R250 000 and pay off the debt.

How do you go about this?

Any advice?
 
Last edited:
grim101 said:
I have debt of R250 000 of which I am paying around R8500 a month. Interest is 13 to 16% on the debt.

Have a bond that I have been paying off for 7 years now.

Is it possible to borrow money on the bond. The goal is to make the repayment alot less.

How do you go about this?

Any advice?
Click to expand...

Is the bond a flexi bond?

I would take from the bond, and pay the debt off asap!

Your bonds interest rate should be alot less than 13% by far
 
zerocool2009 said:
Is the bond a flexi bond?

I would take from the bond, and pay the debt off asap!

Your bonds interest rate should be alot less than 13% by far
Click to expand...
It's a flexi bond and I keep some of the business capital in there when not needed. I can not use the capital to pay off debt.

But if I withdraw my capital I don't have the option to withdraw more... Only what I save in there is available.
 
grim101 said:
It's a flexi bond and I keep some of the business capital in there when not needed. I can not use the capital to pay off debt.

But if I withdraw my capital I don't have the option to withdraw more... Only what I save in there is available.
Click to expand...

You can only take what you have prepaid. But at fnb you can borrow against a debit order again after 7 days

With who do you bank?
 
Standard bank. I have paid back about R350 000 of the bond already, but not able to borrow it back on the online banking.
 
grim101 said:
Standard bank. I have paid back about R350 000 of the bond already, but not able to borrow it back on the online banking.
Click to expand...

Ok. Fnb works differently. You can borrow against any debit order 70% after 7 days.

Find out how does flexi’s work at SB
 
grim101 said:
Standard bank. I have paid back about R350 000 of the bond already, but not able to borrow it back on the online banking.
Click to expand...

I'm confused. You have a flexi bond which you have paid R350000 of the capital already? And you cannot draw on it? That's not a flexi bond.
 
Will find out how SB works.

Business and private banking with FNB for the last 25 years and they were the only bank that did not want to give me a bond.
 
grim101 said:
Will find out how SB works.

Business and private banking with FNB for the last 25 years and they were the only bank that did not want to give me a bond.
Click to expand...

I would love to find/see the reason. In alot of cases FirstRand wrote off debt!
 
Thor said:
What prevents you from racking up the debt again?
Click to expand...
It's all business debt... With the whole mess, it will be much easier to consolidate the debt in my home loan and have a few thousand free every month. Breathing space.

So not racking up debt again that's for sure.
 
  • Like
Reactions: air
Why not just increase the mortgage, i.e. a second bond. There will be fees, but should be substantially less than the interest you are now paying.
What is the value of the property the loan is for at the moment?
 
You'd only be able to withdraw from your bond (1) if there's an access facility (flexi as @zerocool2009 says) and (2) if you've been paying anything over and above the required payments so there's actually an advance amount there.

If 2 is true but not 1, you can apply for an access facility. Call their number or go to a branch. If 2 is not true, you'll have to get a second bond as @WollieVerstege said. This is more of a process and there are fees, but on that scale you'd probably end up saving in the long term.
 
My honest advise, contact the bank, as in access/flexi bonds differ from bank to bank regarding rules
 
I wish people would see the real value in prepaying bonds (put surplus funds in a flexi)
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X