Having an access bond is one of the smartest ways you can manage your home loan.
An access bond is a type of home loan that allows borrowers who have paid extra money into their bond, to withdraw the extra money should they need it.
This means that home owners can benefit from paying interest on a smaller capital amount while the surplus funds are in the bond, but can access the money if they need it. For example, if you had a R1 000 000 bond with a monthly repayment of R8 997 at an interest rate of 9%, and you paid in an extra R500 each month, the saving in interest charges is R174 415 and the term of your bond would be shortened by two and a half years.
A smart way to invest your surplus money is to deposit it into your home loan account as you are…
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