Make Your Homeloan Work For You

Home owners should consider using their bond facility as a tax-free saving tool. By making additional payments into the home loan during good times, you can pay off your bond much quicker and save on a huge chunk of interest. For example, if you are able to make an additional monthly payment of say R2 850 on your bond of R800 000, you can reduce your repayment period to 10 years and save a whopping, mind boggling R602 000 in interest. This creates financial flexibility as you can borrow against the bond during an unexpected financial pitfall. It also serves as a buffer to future interest rate hikes - Jannie Engelbrecht

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