Before any interest rate hikes etc..the're bound to happen somewhere, SAVE with your bond.
Did you KNOW??????
A R 500,000.00 bond at -1% costs you R 5332.15 per month
BUT if you add an additional R 100.00 per month to your payment - Check this out!!!
YOU WILL SAVE:
R 258.76 per month on interest
AND
R 62,103.39 over 20 years......THINK about it
Also you will have access to the extra funds
and
Be in a position to get a better rate from your branch.
Thats where you win!!!!
Check out pay off your home loan earlier
3 comments:
Thanks for this site.
My wife and I have recently just purchased our own home :)
As currently we can handle the monthly payments just fine, I would rather place any extra income into the bond rather than simply split the bond repayments and help drop the loan term.
Can you post a blog discussing the various options open to bondees these days? I've heard talk of splitters and drop a bombs and parking salaries, but everyone I have spoken to has never heard of these things.
A simple explanation would be of great help, especially real world advice the banks will actually agree to.
Example: I would like to pay the half the bond amount bond in fortnightly stop orders, but the bank wants a debit order monthly. Is such a thing possible?
thanks again
Hey Alex
Yes splitters and bomb drops all end up towards a similar end result. Either easing your home loan payment load or playing bank yourself and using your home loan account as a kind of savings account. The banks in general prefer to MANAGE your money for you, but of course at a service cost.
The key to all of this is DO YOU HAVE ACCESS TO ANY ADDITIONAL MONEY PAID INTO YOUR BOND ACCOUNT.
SO instead of splitters etc try to stay away from stop orders. Instead turn your bond account into your current account.
Make sure you have internet access to both your bond account and your current account. If you can link them together even better so.
Then make sure your salaries or income is paid into your bond account on a monthly basis.
AT month end transfer the total sum of your accounts, debit orders etc from your bond account to your current account, where your bills are paid from.
The balance remains in your bond account.
REMEMBER your bond account accumulates interest on a daily basis. If you have a bond at prime (13%) then you earn interest at 13% DAILY on your full salary plus the balance left over after paying your accounts and the cycle is repeated each month.
YOU WILL FALL ON YOUR BACK AT THE RESULT
and best of all
Your monthly costs are reduced i.e. less transactions happening
Your bond is paid in advance always - so you gain interest each month
You build daily interest at your bond rate and reduced your bond term
You increase your available SAVED money without doing anything ever
Its a win win win
Forget about splitters etc, keep it simple and be your own banker
If you need anything else let me know email me at wizchris@gmail.com THE MAGE
Thanks for your help.
Have sent an e-mail :)
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