A homeowner’s commitment to their bond will span over a minimum of 20 years during the time they live in their home, so paying it off as quick as possible is advisable, says Mike Greeff, chief executive of Greeff Christie’s International Real Estate.
“It is in your best interests to repay your bond ahead of schedule. Implementing steps to do so could save you from paying a few years into your bond as well as avoiding the added interest.”
To do this, Greeff advises:
◆Pay extra into your bond account (between a few hundred to R1 000) every month.
◆Pay large lump sums when it is possible. Doing this two or three times a year will make a difference.
◆Set a target date to pay off your bond. This may be in 15 years as opposed to 20. It could be by your 40th birthday, or when a child finishes high school.