Always keep up with bond repayments - even when times get tough

Your home is your most important asset and in tough financial times priority should be given to paying your mortgage bond instalments, says Anne Porter, head of Knight Frank Residential.
If allowed to fall behind, it becomes very difficult to catch up later, Porter warns.
“With the last two increases in interest rates, and costs of food, fuel and electricity rising, many households will be feeling the pinch and it’s time to assess what can be done to help you through any financially difficult months,” she said.
Families must be strict with regards to the amounts spent each month. Many households might have unnecessary “extras” that they don’t think about, such as gym memberships that might not be utilised in their entirety, or magazine and online subscriptions that run month to month without ever being re-assessed as to whether they’re absolutely necessary. Other payment items to consider are grocery spends and cell phone accounts. Check where grocery shopping is done and the quantities bought, as many households tend to buy expensive items or too much and throw a lot away, and if a cell phone contract can be capped or converted to “pay as you go” use that service instead.
“It has to be remembered that every little bit will count towards a saving each month and that cutting back does not have to be forever. It will just be for a time, until you manage to get ahead of the bond repayments once more,” said Porter.
“If there is a chance that there will be a shortfall on the monthly instalment on the mortgage, it is best to contact your bank and discuss your predicament with them.”
Banks are willing to discuss methods to assist home owners in difficulties. One of the solutions is to extend the term of the bond from 20 years to 25 or 30 years. That way the monthly payment can be reduced. Banks want to help you keep your home and only resort to repossession as a last resort.
“There are always solutions and ways to get through a difficult financial time, and the best way to get through it is to be proactive and work on sorting out the problems by communicating this and your intentions to solve the matter to your bondholder,” said Porter.

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 23 Feb 2018
      RE/MAX Property Associates’ Table View Office, which services property buyers and sellers along the Table Bay coastline and surrounds, has recently sold a home in Woodbridge Island for R11 million – the highest price paid for any home in the sought-after security complex.
    • 23 Feb 2018
      Choosing to invest in an overseas property can be daunting. But as more and more investors recognise the value of a diversified portfolio that includes property outside of their own country of residence, international property investment is growing in popularity.
    • 23 Feb 2018
      The positive change in South Africa’s political landscape is paving the way for an upswing in the local property market.
    • 22 Feb 2018
      An excellent credit score is one of the most priceless assets a potential home buyer can have. This tool has the power to secure favorable mortgage and refinancing rate, influencing everything from the size of the loan repayment to the interest rate on the home loan.
    • 22 Feb 2018
      What do you do if you love your home’s location and the area, but the home no longer fits your growing family’s needs? Do you stay and renovate your existing home or find a home that meets your developing criteria?
    • 22 Feb 2018
      While every owner wants to sell their property at the best possible price, overpricing a home can be the kiss of death for a sale.
    • 21 Feb 2018
      Given the hand they were dealt, government has performed a delicate balancing act which it is hoped will serve to reignite confidence in investment in South Africa, regain our global credibility and satisfy the credit ratings agencies, says Dr Andrew Golding, chief executive of the Pam Golding Property group.
    • 21 Feb 2018
      The real estate mantra, ‘location, location, location’ remains a strong market influence regardless of the prevailing economy, with suburbs like Rondebosch enjoying the buffering benefit of being ideally situated.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us