Take a break from paying your bond.That sounds like something that is too good to be true, but it is a real possibility for some of us.
Most of the major banks now offer what is called a payment holiday.This allows the borrower to take a break from paying their bond for between one and three months.Many people would welcome this brief period of financial stress relief.
Of course this option is not available to everyone and you should contact your bank to find out what their qualifying terms are.Most banks will make this available to first time buyers and call it an initial payment holiday.They will also make it available to certain other existing clients providing they meet the qualifying terms.Some of the qualifying terms are that you can usually only apply for it once and that the new loan or the balance of an existing loan cannot exceed 100% of the loan to value.
While many of us will be greatly excited by having thousands of rands to spare for a few months and will immediately envision flat screen t.v.’s and other luxuries, we should first take a step back and review our short-term debt.Paying off some of our credit card purchases will also increase our monthly disposable income and that would probably be the most responsible use for something you may only be able to do once.
As I said above ,contact your lender and hear what they have to say on the matter.Qualifying terms will differ between banks.And remember, nothing in life is free, your repayment period will be extended or your repayments will be recalculated to cover the month/months you took a break from.It is a break, not a free gift.
Normally a good reason is that you lost your job or your spouse lost her job.
Try it.
Thx for the comment Colin. In the economic climate we are living at the moment this sort of “payment break” will probably become a standard thing. I think it is always important to remember that we all need help some times.