Monthly Archives: June 2014

Pay extra into your bond and save thousands of rands


Many consumers aren’t aware that even a small additional payment into their home loan account every month can make a big difference.

Meyer de Waal – attorney & My Budget Fitness director says – make use of the unique Avid calculator:



Read more in the following article that appeared in Property 24


“If you have a 20-year bond of R500k at an interest rate of 12,5%, and you increase your bond repayment by just R300 a month, you could pay off your bond almost four years earlier and save more than R200k in interest,” says Adrian Goslett, CEO ofRE/MAX of Southern Africa.

Given the difficult economic conditions, however, many homeowners find their budgets stretched to the limit and should rather focus on saving on interest until the tides change.

In order to fast-track the repayment of your home loan with the aim to save on interest, Goslett advises homeowners to secure the best possible interest rate on their home loan. “Every 0,5% reduction in the interest rate on a home loan of R1m represents an interest saving of more than R85k on a 20-year bond. Even 0,1% will make a significant difference over the life period of a bond,” explains Goslett.

He advises homeowners who have a good track record in making their bond repayments in full on time to contact their bank to negotiate a better interest rate, or even consider switching from one institution to another to obtain a lower rate. “However, if you decide to switch, be sure that the cancellation and penalty fees charged are not more than the savings you can achieve,” he says.

“A lower interest rate will not only significantly reduce the interest payable over the term of the bond, but it will also allow you the opportunity to pay extra into your home loan account every month. If you maintain the original repayment at a lower interest rate, you will be paying extra into your bond each month without having to find extra cash in your budget,” he says.

Similarly, homeowners can inform their home loan provider to keep their repayment at the current level should the interest rate drop. “Even though the interest rate is currently at its lowest in 30 years, there has been some speculation about a further possible rate cut. The banks usually decrease your repayments automatically if the repo rate is reduced. By keeping your repayment amount constant as the interest rate drops, you will be paying extra money into your bond account every month without touching your monthly budget,” adds Goslett.

An access facility on your home loan account, as well as Internet or cellphone banking capabilities, provide further opportunities to save on the interest charged on your home loan. The reason for this is simply that the banks calculate the interest on a home loan based on the outstanding balance on a daily basis.

If you have an access bond, as well as Internet or cellphone banking capabilities, you can move cash into your home loan account while still retaining access to it. This will reduce the outstanding balance, and thus the interest charged daily, even if only for a few days, until you withdraw the amounts you need again. “Even these small savings on the daily interest charged can add up to a significant amount over time,” he says.

“Check the cash handling fees charged by your home loan provider and if these are reasonable, deposit any cash you have into the bond and, when needed, transfer the cash back into your current account overnight using the Internet,” explains Goslett.

This could include, for example, your annual bonus or a refund from SARS, or, taking it a step further, a part of your salary.

Splitting your monthly instalment into two payments over the month, e.g. the 15th and the 30th of the month, you can also save on interest. If your bond repayment is due on the 31st and you make it in two instalments – one on the 15th and one on the 31st – you are saving on the daily interest over 15 days.

The payment on the 15th reduces the capital outstanding for 15 days until the interest amount for the month becomes payable on the 31st. The bank’s agreement to this arrangement, instead of the usual debit order, will however depend on a solid payment record.

“Paying off your home loan faster is undoubtedly one of the best investments you can make. Don’t let a tight budget stop you from taking proactive steps to do so. By using strategies such as these, you can fast-track your home loan repayments while saving a considerable amount in interest during challenging economic times,” concludes Goslett.

Readers’ Comments Have a comment about this article? Email us now.

To pay off a bond in short time requires the family to re-learn a new lifestyle of spending. We have focused on paying our bond and did that in 2 and a half years for bond of almost R350k. but we had to sacrifice a lot of things such as fashionable clothes and so forth. Even though, this is our story right now, we need to learn more.

This is indeed a good article that every bond holder should read. – Martha

Thank you for such an interesting article on Bond Savings. I have had a bond for a fairly long time now and never knew that there were so many ways of helping us to settle our bonds and by saving such vast sums by doing so.

What an eye opener. I just wished that the banks making the loans would change attitudes and inform the public of the various savings procedures available. Wishful thinking I should imagine.

Thanks again for such an amazing article. – Bill Lewthwaite

Leave a comment

Posted by on 17/06/2014 in Content


Tags: , , , , ,

5 tips to put you in control of your debt

5 tips to put you in control of your debt

The My Budget Fitness and Rent2buy programmes developed by Meyer de Waal and Juanita van Vuuren are designed to help people first acknowledge their debt situation, then analyse their income and expenses, considering their monthly expenses, their debt repayment obligations, their credit profile and status and then assist them to achieve their goal – either to get out of debt or to reach their goal to own their own home.
With Rent2buy you can secure your own home, even when you have some minor problems to resolve with your credit profile, make use of the current credit amnesty to clear your name and restore your credit profile. You also have the opportunity to save towards a deposit as pert of the rent2buy agreement can include ( terms and conditions apply) that a portion of your rental amount can be allocated to save towards a deposit, all designed to assist your to secure a home loan and or negotiate a better home loan interest rate. Go to for more information. Your will also receive a tool – similar to an “app” to enable you to manage your day to day expenses – your personal budget- from your mobile phone – called Mobile2budget. Any type of mobile phone can use this budget tool. Go to to get more information.
The following article may be of interest –

Cape Town – You are not alone in the debt storm – in fact you are sharing the same problem with nearly 10 million other South Africans.

Admitting your debt situation is the first step to a better financial, emotional and personal life going forward, says in-house debt expert Moeshfieka Botha.

She lists 5 tips to make you feel more in control of your debt.


– Fin24

1 Comment

Posted by on 04/06/2014 in Content


How to deal with illegal garnishee orders

My Budget Fitness and Rent2buy, in the quest to assist home buyers to clear their debt often encounter home buyers who have garnishee orders against their names. Many times these garnishee orders are illegal.

These garnishee orders prevent them to obtain a home loan, or even enter into a rent2buy or similar transaction to secure their own home – as their credit records are impaired and the garnishee order usually cause havoc with their affordability – an important factor when you apply for a home loan says Meyer de Waal of Rent2buy and My Budget Fitness.

Cape Town – Anton Viljoen, Group CEO of DCM, demystifies the misconceptions on garnishee orders.

In this short video he explains how it is issued, how it gets delivered and how to clear your name.


– Fin24

* Have something to add on the garnishee issue? Let us know.