Bond Switch South Africa


A bond switch (home loan refinancing) may be undertaken to reduce interest costs, to pay off other debts, and to reduce one's periodic payment obligations (sometimes by taking a longer-term loan). Bond switching also helps to reduce risk, and/or to liquidate some or all of the equity that has accumulated in real property during the tenure of ownership.


Bond switching can lower the monthly payments owed on the loan either by changing the home loan to a lower interest rate, or by extending the period of the mortgage bond loan, so as to spread the re-payment out over a long period of time. The money saved can be used to pay down the principal of the home loan, thus further reducing payments. Alternately, mortgage bond refinancing can be used to transform available equity in one's house into ready cash, available for other purposes or expenses.


Another use of a bond switch is to reduce the risk associated with an existing home loan. Interest rates on adjustable-rate home loans shift up and down based on the movements of the various prime rates used to calculate them. By refinancing (switching) an adjustable-rate mortgage bond into a fixed-rate one, the risk of interest rates increasing dramatically is removed, thus ensuring a steady interest rate over time.


Quick and Easy Form

Get the ball rolling, fill out the form below and a bond originator will contact you asap to discuss switching your current bond.


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Lowest Interest Rates

You will be pleasantly surprised at prime less interest rates we can negotiate on behalf of our clients. We are commited in finding our clients the best rates in the current SA mortgage market.


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