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Flexible repayment terms

When tailoring your home loan, one of the most important decisions you will make is the home loan repayment term. Once you’ve decided how much you want to borrow, you need to work out how long you need to take to pay it back.

The quicker you pay off your home loan debt, the less interest you will pay (so the home loan will be cheaper) and the less time you will spend in debt. However, the quicker you commit to paying your home loan off, the higher your monthly repayments will be.

Absa offers the choice between two repayment terms: a 20 year bond or a 30 year bond. First, decide which home loan option you’ll be taking out with Absa and then calculate the minimum repayment term your monthly budget will allow. By stretching the repayment term to a 30 year bond you can bring down your monthly bond repayments.

A longer home loan repayment term might improve affordability for young buyers and free up monthly cash flow. However, it is important to be aware that the longer the home loan repayment term, the larger the total interest payable will be. You should also review your bond arrangements regularly, shortening the repayment term at a future date if possible.

Use our online Home Loan Calculator to work out how increasing your instalment will affect your monthly repayments.

Did You Know?

You can fix the interest rate on your home loan for a predetermined period of time; so your rate will not be influenced by fluctuations in the prime interest rate.