I went to LoanLink the other day for a good old fashioned home loan refresher course. They were giving us a breakdown of the different loans offered by the different banks , when I came across something called the Multiplan Loan from ABSA? Ever heard of it? Well neither had anybody else in the training room...
The Multiplan loan is a bond account with multiple loan accounts. It is a home loan option that allows you to split your mortgage up into separate accounts in the amounts of your choice, each with it's own repayment option and each with it's own interest rate! WHAT FOR?
Well lets say for arguments sake you had a loan account of R500 000.00. You need some change in your life, so you decide to split this loan account up into 3 segments, your home loan account, a breast enlargement account (for the wife of course) and a skiing account(for yourself while your wife recovers). What this means is that you have one loan account with two secondary accounts.
Each MultiPlan Secondary account can have its own:
* repayment term (not exceeding the term of the Primary account)
* interest rate options
* payment method for easy money management
* FlexiReserve facility.
At first I failed to see the advantages of this? What's the point? Why on earth would you want to split up your loan account when all mortgage originators and bank managers tell you the best way to get rid of debt is to combine it all into your bond account?
I thought about this for a while! Don't you think this is the perfect way to move money around? Think about it, 3 accounts, 3 different interest rates? mmmm I'll leave it at that!