Does extra payments on your bond help?

Author
MyProperty
South Africa's #1 independent property portal

The benefit of paying extra on a mortgage isn’t just in reducing the monthly interest expense a tiny bit at a time. It comes from paying down your outstanding loan balance with additional mortgage payments, which slashes the total interest you’ll owe over the life of the loan.

Even paying as little as R50 extra on your bond, you can immediately start saving on interest.

By paying R50 extra on a R500 000 Home Loan on a 10% interest rate for 20 years, you will be able to pay off your home loan in 19 years and three months, while saving over R24,941 in interest that you would have paid to the bank.

You should also consider paying a lump sum if you get a bonus at work for example.

Property questions?
Get quick answers about buying, selling, renting, and more from our AI powered real estate bot
Home Loans Property News
Should you buy a home in a residential estate?
Market & Opinion
Should you buy a home in a residential estate?
03 Jun 2024
When picturing a residential estate, the image that often comes to mind is one of lush greenery, wide-open spaces, happy families, children on bicycles, and perhaps a friendly Labrador trotting alongside. This idyllic vision is commonly promoted by residential estate developers and their marketers to potential buyers. But is this really the typical South African neighbourhood? 
read more
Navigating the savings journey: Months 5-6 of your year to homeownership
Myproperty Guides
Navigating the savings journey: Months 5-6 of your year to homeownership
20 May 2024
Welcome to months 5-6 of your journey from renting to homeownership! You've made significant progress so far, and now it's time to focus on saving for your down payment and closing costs. These months are crucial as they lay the financial groundwork for your home purchase.
read more
Should you rent out your garden cottage?
Market & Opinion
Should you rent out your garden cottage?
10 May 2024
Renting out a garden cottage within your property can be an enticing prospect for many homeowners. It offers the opportunity to earn extra income and utilize unused space. However, like any decision, there are both advantages and disadvantages to consider before taking the plunge into becoming a landlord on your own property.
read more
Are You Ready to Sell Your Home? Here's What You Need to Know
Market & Opinion
Are You Ready to Sell Your Home? Here's What You Need to Know
07 May 2024
Selling a home is a significant decision that requires careful consideration and preparation. Before listing your property, it's essential to assess market conditions, understand the costs involved, and have a few tips for selling in a tough market just in case. Additionally, repeat buyers need to be informed about the changes in the home loan application process.
read more
Real Estate Tools
Get pre-qualified
Make offers with confidence knowing what you can afford. Then shop for the best home loan
Bond Calculator
Calculate the estimated repayments on a home loan and savings with extra payments