Bond payment calculator

Bond payment calculator

Work out a possible bond repayment…

bond-recalculatorBond payments a daunting prospect

Many of us consider ourselves truly ‘grown up’ when we buy our first house! But attached at the hip to this truly ‘grown up’ purchase is the bond repayment plan set out by the relevant loan provider. There are many things to consider when you want to buy your first house, and understanding all the costs involved is essential. The bond repayment, while essential, is not the only cost you need to consider.

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When it comes to bonds…

Many banks are no longer issuing a 100% bond when you do a bond application. Most bonds awarded are only to the value of 80% or 90% (if you are lucky) of the total amount needed to purchase your dream home. This means that it is your responsibility as the applicant to save the 10% to 20% you will need to pay as the deposit on your home. It is also important to remember to do a full inspection of the home you have decided you can’t live without! Understand any issue there may be with the property such as mould or damp problems, electrical problems as well as plumbing and electrical problems. You don’t want to have to start paying for those repairs after you have bought your new home.

READ MORE: HOW TO GET THE MOST OUT OF YOUR INSURANCE 

Remember, this is a long-term investment and you are going to be locked into your repayment plan for the duration of the bond (20 – 25 years). For this reason, try to negotiate as much as possible when you put your offer in. Try to get the price down as much as possible as this will have a direct impact on your repayment amount.

Most importantly, understand fully what your monthly payments are going to to include. FNB make working out a possible bond calculation easy with their Home Loan Bond Calculators. 

Joni van der Merwe

About Joni van der Merwe

Your Family’s Digital editor. Avid retweeter. When I’m not scrolling Instagram you’ll find me in my garden. Keen on DIY and I don’t believe there’s anything that can’t be fixed with some chalk paint.

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