How can you repay your bond/mortgage quicker?

In a world where oil is getting scarce and inflation rises, and thus causes interest rates to rise, it might be a good idea to try and repay your bond/mortgage quicker. So how can you do this?

Pay extra into your bond/mortgage every month

The first tip I have is to pay an extra bit each month. If you bought a property for R 600,000 and you are repaying the bond over 20 years at an interest rate of 15%, your repayment per month would be approximately R 7,901. The total loan value after 20 years would be approximately R 1,896,177.

Now if you just paid an extra R 500 per month into your bond your monthly repayment would be about R 8,401, you would repay the bond in about 14.98 years and the total repaid loan would be about R 1,509,984. That is a saving of about 5 years and R 386,193.

So think about it, you can save yourself a lot of time and money by just repaying an extra R500 per month.

Repay half of your repayment every two weeks

Now this is one of my favorite ways to repay a bond quicker. If you combine this method with the above method, you will repay your bond in no time at all and save A LOT OF MONEY!!!

Every two weeks you pay half of your repayment. At the end of the year you would have paid an extra repayment without even feeling it in your cash flow. This sound unbelievable but remember your interest gets worked out on a daily basis.

By using these methods you will pay your bond quicker and save time and money.