Do you have an existing home loan (mortgage bond)?

Did you know your home loan (mortgage bond) will not automatically be cancelled once paid off?

Yes, you will be left with two options:

  • To keep your home loan account open or
  • to close your account

 

  • There are benefits associated when keeping your home loan account open, which includes the use of the flexi account facility, linked to your home loan account. This will assist when you apply for further loans to purchase new properties or do renovations.

 

What will this cost me? Your usual monthly insurance and administration fees will   still apply.

 

Your Title Deed will remain with the bank, as security, until the home loan is cancelled.

 

  • You will no longer have to pay insurance premiums, admin fees or bank charges once your home loan has been cancelled and you will receive your original Title Deed from the bank for safe keeping.

Do remember to insure your home privately as soon as you receive your Title Deed.

How do I cancel my home loan (mortgage bond)?

Step 1:  You will need to give the bank written notice of your intention to cancel your home loan. A period of 90 days is usually required. However, if you wish to cancel your home loan before the 90 days period, you will be levied by the bank with an early termination charge.

Step 2: The bank’s cancellation attorney will provide a settlement statement, with your cancellation figures. Only once the cancellation figures are paid and the cancellation is registered at the Deeds Office, will your home loan officially be cancelled, and your account closed.

Step 3: Please make a reminder, that the cancellation attorney needs to send you your Original Title Deed. This is your proof of ownership of your property. Please store your Title Deed safely, as it can be an expensive exercise to replace.

 

Information taken from Seymore du Toit & Basson Inc