Hot Tip – Home Loans South Africa
Access Bonds have opened up a number of financial opportunities for homeowners. Unfortunately, most homeowners are unaware of the advantages offered to them by this innovative Home Loan product.
Home Loans South Africa – The Basics:
An Access Bond is simply a homeloan which allows you to pay extra amounts into your bond every month to help reduce the interest charges. Those extra payments remain available to you and you’re able to withdraw the extra funds from your bond you need it.
Access Bonds are available from the major banks – ABSA, FNB, Nebank and Standard Bank.
More South African HomeLoan Basics…
What does your insurance have to do with your Access Bond?
By simply increasing the excess on you household insurance you can cut your monthly insurance premium by at least 25%.
Now that you’ve reduced you insurance premium you’re able to take that extra money and pay it into your bond every month. This will reduce the amount of interest you’ll pay on your homeloan.
The risk here is that if you have an insurance claim you’ll have to pay a higher excess. But if you have an Access Bond you can simply apply for a low interest low and/or withdraw the extra payments you’ve made into your bond to pay for the insurance excess.
Provided that you are a cautious home owner, the savings on the insurance premiums will offset the interest charges should you need to access the money.
Here’s how it works:
- Increase you insurance excess to lower your monthly premiums
- Take the money you’ve saved and pay it into your Access Bond
- Youâ€™re now saving on interest payments because you paying more into you bond
- If you need to claim, use the money you’ve saved in your Access Bond to pay the excess.