Propbond’s Bi Weekly Repayment Schedule

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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 be R4,601-03.

  1. 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

  2. Read on….This is over three quarters of a million rand in interest alone, which the homeowner pays to the bank.

  3. Join our happy clients by applying for a Bi-Weekly Bond Repayment Plan.

  4. This is how it works:

    1. Interest Savings over Term: R201,565-86

    2. Total Payment Savings over Term: R262,258-54

  5. 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

  6. 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 each month

  7. I have wonderful tips for you – the HOMEOWNER to help and guide you

Propbond’s - Did you know??

  1. A 1% drop in interest rates reduces the bond term by over 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.

  2. 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.

  3. Buy well within your means – quick calculation how to qualify:

    1. Total joint income X.3 ÷ 14.5 X 1000 = Amount of bond you qualify for

    2. 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 payment

  4. Use our methods and combinations, by applying these methods you will also create some other significant advantages for yourself.

  5. You will build up a reserve of funds in the bond account which you can access as an emergency

  6. 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

  7. 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.

  8. 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.