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23 Jul 2017
Modern day bonds tend to have generous life spans – this to give homeowners enough time (and financial leeway) to pay them off. Depending on your home loan provider, you could have anything from 20 to 30 years to pay off your bond. You might be interested to learn that this hasn’t always been the case. Property ownership in the 1900s was a privilege reserved for the very wealthy – i.e. those individuals (or families) who could afford to pay the obligatory 50% deposit, and then settle their debt at the end of a five-year period.
During the Great Depression, however, banks and home loan providers were forced to restructure their offerings, which eventually lead to the long term bond repayment plans we know today.
Does this mean you have to use the full life period of a bond to pay it off? Absolutely not! Paying off your bond quickly decreases the total amount of interest you’ll pay on your loan and could save you thousands in the long term.
With some discipline and clever financial management, you, too, can fast-track your home loan repayments, making you debt-free much sooner, and reducing the interest you pay over the life of your home loan.
Here’s how to get it right:
Paying off your bond quickly requires discipline, but the rewards of being debt-free and owning your home outright are worth every sacrifice. Contact our team today for additional guidance on what you need to know - or send us your details and we'll call you back.