Thursday, 9 June 2011

What is in an ACCESS BOND ?

So different banks call it different things but the catch phrase ACCESS BOND means just that - can I access extra money paid into my home loan.

These can be funds paid in, over and above the required monthly installment or could be a prepaid amount over the bond life.

These facilities are only granted at the sole discretion of the lending bank and is not automatic and under the National credit Act, it is clearly stated that the bank must provide customers with the opportunity to prepay the home loan account and to receive the interest benefit of a prepayment from the date the payment is made, however access to prepaid funds is at the discretion of the banks.

So you most likely will have to apply after bond registration not before.

You will need a transactional account from that bank.

make sure you use your facility else the bank will stop it.

No links to credit cards from access bonds.

When the bond becomes older i.e approximately 5 years left this facility will more than likely be cancelled.

So a great read and nice little handbook for all in this tight lending market buy this now - its a great read.

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