select
|

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
  
2000
Characters remaining


    Latest Property News
    • 24 Nov 2017
      Demand for secure estate living in Hout Bay has risen sharply in recent years, precipitating a spike in development with estate homes now accounting for 20.24% of the property landscape with the launch of an exclusive new gated development on 26 November adding 20 more units to the existing 1250 estate homes.
    • 24 Nov 2017
      There are some things that money can’t buy – spectacular views from Mouille Point to the V&A Waterfront and a trendy and lively neighbourhood that encapsulates the very best of the Cape Town lifestyle.
    • 24 Nov 2017
      Tshwane’s four-bedroom Mayoral mansion, nestled among ambassadorial residences in the upmarket suburb of Muckleneuk, fetched R5.1 million after spirited bidding at High Street Auctions’ final sale of the year.
    • 23 Nov 2017
      Reserve Bank Governor, Lesetja Kganyago, said that the Monetary Policy Committee had once again decided to let the interest rates remain unchanged with the repo rate at 6.75%, and the prime lending rate at 10.25%.
    • 23 Nov 2017
      As the holiday season approaches, most of us are counting the days until that year-end bonus hits our account. There’s nothing quite like a little bank balance booster to get us in the holiday spirit.
    • 23 Nov 2017
      The Adelphi Centre (now entitled “ARTEM") in Sea Point, Cape Town, is being extensively renovated, and once complete will offer an ultra-luxurious galleria style shopping centre unlike any other seen on the Atlantic Seaboard or in Cape Town.
    • 23 Nov 2017
      If you are looking to sell your home in today’s real estate market, there are certain things that you need to include both inside and outside your house. Today’s generation of home buyers is looking toward a more eco-friendly, energy and water conscious home, and if your house stands out then you are more likely to be able to sell it.
    • 22 Nov 2017
      Most people know of the Community Schemes Ombud Service (CSOS) and that levies must to paid to fund its operations. In this article the experts at Paddocks will address some of the issues that are causing confusion.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK