What is an access bond?

An access bond is a type of home loan that allows borrowers to pay extra money into their bond, which can be withdrawn whenever they need it, or they can use it to reduce their monthly home loan instalments. This means that you can benefit from paying interest on a smaller capital amount while the surplus funds are in the bond, but can access the money if they need it.

How much can I withdraw from my access bond?

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You can only withdraw the extra amount you have paid into your bond, not the monthly repayments. In other words, if your monthly repayments are R10 000, and you pay R10 500 over 10 months, you can withdraw R5000 (R500 X 10) from the access bond. If you would like to increase your access bond facility, the bank will be required to do a full risk assessment as required by law to ensure that you are not over-indebted.

How do I get an access bond?

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You can either have the facility incorporated into your home loan when your home loan application is approved, or you can apply for this facility after your bond has been registered. Another option is converting your home loan into an access bond at any time during the term, provided that your home loan has been well conducted and you are not under debt-review.