Access Bonds are by far the most popular type of home loan currently available.
An Access Bond is very much like an ordinary home loan except it has an added saving benefit attached to it.
The savings portion of this type of home loan, allows you to pay extra funds into your bond, and still have access to those extra funds.
The big benefit is that any extra monies you put into your bond account will help to reduce the total interest you end up paying on the outstanding home loan.
Since the interest on your home loan is calculated on the total outstanding amount. If you pay a little extra into you bond every month, you be lowering the total outstanding amount and therefor you’ll pay less interest.
The reason why Access Bonds are so popular, is because you continue to have full access to any extra money you place in your bond account, while enjoying the benefit of paying less interest overall.
Some banks do, however, only allow you to withdraw R1000 or more from your Access Bond account.