Many people who want to save alot of money over the long term will opt to keep paying their higher bond repayments instead of taking advantage of the recent interest rate cuts and those that are likely to follow as the year progresses.
By paying more than your monthly minimum you could save yourself hundreds of thousands of rands in interest over the term of your bond.Besides that you could also shorten the length of your bond. This is good news to most of us, as none of us want to be tied down financially for all eternity.
Some homeowners are however not in a position to continue paying such a high bond and really need the financial relief the rate cuts can bring. But for those homeowners who have become used to paying the higher payment or if you suspect you could pay a bit extra it would be a great idea to check with your lender and ask them to assess how much you would save in the long run by paying a little bit extra each month.
Always check with a qualified professional before making any decisions that could drastically affect your life.
