Success in life greatly depends on successful
Propbond’s Bi-Weekly Repayment Strategy shows
you how much money you will save by splitting your monthly
repayment and paying that amount every 2 weeks. By making
additional payments are applied to your outstanding principal,
you can save thousands of Rands over the life of a loan.
Many homeowners are not aware how much money can
be actually saved in interest by shortening the life of a bond.
In many cases you are paying more than twice the amount of the
original loan, in interest alone – and you aren’t even aware
of it……take a look at the example…..
For example, let us take the case of a R370,000
loan at 14% interest with a life of 20 years. The monthly payment would
The total repayment is R1,104,246-6.
After subtracting the R370,000
principal amount that the borrower received, there is a
total interest charge of R734,246.63
Read on….This is over three
quarters of a million rand in interest alone,
which the homeowner pays to the bank.
Join our happy clients by applying for a
Bi-Weekly Bond Repayment Plan.
This is how it works:
Interest Savings over Term: R201,565-86
Total Payment Savings over Term: R262,258-54
YOU could apply for an access bond with the
amount saved – LET US DO THE FULL
CALCULATION FOR YOU OVER THE ENTIRE PERIOD AND HELP YOU SAVE
THOUSANDS OF RANDS. These methods are so useful
DID YOU KNOW…….that interest is
calculated on your debt to the bank on a DAILY basis,
and the common practice in South African banks today is to
capitalise the interest MONTHLY, on a certain date
I have wonderful tips for you – the HOMEOWNER
to help and guide you
- Did you know??
A 1% drop in
interest rates reduces the bond term by over 4˝
years if the installment is maintained at the original
level. Even if you are already halfway through your bond
term when the rate decreases, by maintaining your payments
at the same level you will reduce your bond term by
approximately 1 year.
Do not allow the bank to add on costs: Most
of us would not be concerned about a monthly fee of R5
added to our bond. After all, it works out to a total of R1,200
over 20 years. However, because of the interest factor, this
small extra cost will add 2 months onto the bond term, that’s
over R8,600 that you will still
have to pay at a time when your bond should be settled. That
is why it is important to always pay a little extra on your
bond every month.
Buy well within your means – quick
calculation how to qualify:
income X.3 ÷ 14.5 X 1000 = Amount of bond you qualify
Calculate the maximum house price you
can afford, then deduct 10% from this amount, this
ensures that you can cater for unexpected increases in
interest rates. Eg. If you can afford to buy a house
priced at R300,000, not buy for more than R270,000 –
pay installments based on the higher amount .by doing
this you are repaying extra capital from the first
Use our methods and combinations, by
applying these methods you will also create some other
significant advantages for yourself.
You will build up a reserve of funds in the
bond account which you can access as an emergency
If interest rates increase, the fact that
you have paid in advance to your bond will mean the you can
ask the bank to reduce your installment
You can utilise the surplus funds to buy
things which you would otherwise need to buy using
installment sale or credit card debt, thereby gaining the
benefit of the lower interest rate on the bond.
We are showing you how to manage your money
in a more efficient manner, your bond can be settled years
before it is due, resulting in thousands of Rands saved.