When taking up a new home loan with Absa, you can request to register a higher bond amount than the minimum required at the time for future use. In time, and when the property value has increased, having a higher bond amount will enable you to take up further finance without the hassle of registering a further bond.

Access equity

You can access equity in your home loan for
future use when your property value has increased.

Savings on bond costs

Benefit from savings on bond costs for not
having to register a further bond sometime in the future.

Further finance

Enjoy convenience and a quicker
turn-around-time when taking up further finance.

How to get it and what you can expect

  • What you get

    • Enables access to equity in your home loan for future use when the property value has increased to allow a Further Advance to be taken up.
    • Savings on bond costs in not having to register a further bond sometime in the future.
    • Convenience and a quicker turn-around-time when taking up further finance.
    • If your property value has not increased to allow for equity take up, you may apply for further finance that may only be used for home improvement/extension that in turn will increase the value of the property

  • How does it work?

    • You can take up a new home loan with Absa, the customer can request to register a higher bond amount than the minimum required at the time for future use.
    • When the property value has increased, having a higher bond amount will enable the customer to take up further finance without the hassle of registering a further bond.
  • Features of a Future Bond

    • Create future value in the Bond for use when the property value has increased to the extent that the customer can take up a further finance.
    • It allows greater flexibility and convenience to the customer.
    • You save time and money in future when the customer wants to take up a Further Advance.
    • Registering a higher bond amount will not enable a higher loan amount at inception.
    • Making use of the Future Bond (higher bond amount value) will be dependent on the increase in your property value and approval of a Further Advance.
    • The difference between the loan granted and future bond amount is not automatically available for future take up.
    • Future Bond will not affect the loan repayments as the repayments are only calculated on the loan amount paid out.
    • A full application, credit assessment and property valuation will be applicable.

    Example of the bond registration fee impact:

    Register higher bond up to 20%. (Example: R 1Million bond)

    • Bond fees on a R1 million bond – R15 852.40
    • Bond fees on a  R1.2 million bond – R17 297.60
    • Bond fee difference on a  20% additional bond – R 2 075.20

    The attorney fees on registering a R200 000.00 bond on a Further Advance in the future will be R4 964.20.

    As per the example above, although the initial bond cost is R2 075.20 more at registration, the customer saves R 2 889.00 by registering the additional bond up-front.  (R4 964.20 – R2 075.20).

Need more help?

Let one of our consultants help you get the best home loan for your needs.

Call us on:

0860 111 007

E-mail us at:

home@absa.co.za

Visit your nearest branch