When the time comes to cancel your bond, either because you have paid up your loan or you are planning on selling your home, there are additional costs and processes to consider. Read on to find out about the process, and find out where you could save some money.

Absa Home Loan

You are still paying off your home loan

If you are planning on selling your home but your home loan is not yet paid up, this is what's required to cancel your bond with Absa:

Cancelling your bond

Give notice of cancellation:

 

  • You will need to give us at least 90 days’ notice of your intention to cancel your bond to avoid any early termination fees.
  • Your attorney can request cancellation figures or you can call 0860 111 007 to initiate the request for cancellation.
  • The Notice of Cancellation is valid for 6 months.
  • If your bond is not cancelled within 6 months, you will be required to give another Notice of Cancellation.
  • You will pay a cancellation fee to your attorney – be sure to discuss this with your attorney first, so you know what you will be paying.

FlexiReserve during your cancellation process:

  • Your FlexiReserve facility will be suspended as soon as your attorney receives guarantees for the settlement figures .
  •  Should you wish to withdraw from your FlexiReserve after the guarantees have been received you will have to ask your attorney to stop the cancellation process, withdraw your funds and then restart the cancellation process.
  • You can call the Absa Home Loan Service Centre on 0860 111 007 for assistance or get your attorney to make the arrangements.

Early termination fees

  • This is the fee you will pay your bank for cancelling your bond early, if the notice of cancellation was received less than 90 days before your bond was cancelled in the deeds office.
  • This fee will be a maximum of 90 days (3 months) interest on your remaining balance from the date of you giving a Notice of Cancellation
  • If your bond is cancelled during the 90-day Notice of Cancellation period, your Early Termination fee will be calculated on the remaining period e.g. if you cancel your bond 60 days into your 90-day Notice of Cancellation period, your Early Termination fee will be 30 days interest.
  • If your bond is cancelled after your 90-day Notice of Cancellation period, you will not pay an Early Termination Fee.

Additional costs:

  • Legal Fees – if there are litigation proceedings then a provisional litigation fee may be added to your balance. 
  • Interest – Interest will be charged on the outstanding balance from the date the settlement figures are issued until your bond is cancelled and payment is received.

Home Owners Comprehensive Insurance (HOC):

  • If your HOC is debited from your home loan account, once your bond is cancelled you must make arrangements to have the debit order moved to your transactional account otherwise your cover might lapse. Call 086 222 7272 to make the necessary arrangements.

After your bond has been cancelled:

 

  • Upon cancellation of the bond, your cancellation attorneys will pay Absa according to the cancellation figures that were issued.
  • This amount will be credited to your home loan account and any extra monies will be refunded to you in terms of the refund instruction completed at the attorney. 
  • Your home loan account will then be closed.
Buying A Home

Your home loan is paid up

Once your home loan is paid in full you will need to cancel your bond to obtain possession of your property’s title deed.

Steps to cancelling your bond

Initiating the cancellation:

  • A cancellation attorney will cancel the bond on your property at the deeds office and you will have to pay a cancellation fee to the cancellation attorney. There are no bank fees for a paid- up bond.
  • You can call 0860 111 007 to initiate the request for cancellation of your bond.
  • You may also go to your nearest branch and ask an agent to assist you to start the cancellation process.

Home Owners Comprehensive Insurance (HOC):

  • If your HOC is debited from your home loan account, once your bond is cancelled you must make arrangements to have the debit order moved to your transactional account otherwise your cover might lapse. Call 086 222 7272 to make the necessary arrangements.

After your bond has been cancelled:

  • Upon cancellation of the bond, your cancellation attorneys will pay Absa according to the cancellation figures that were issued.
  • This amount will be credited to your home loan account and any extra monies will be refunded to you in terms of the refund instruction completed at the attorney.
  • Your home loan account will then be closed

Selling your property and buying another through Absa?

If you finance another property with us, you qualify for our Loyalty Home Loan benefits. Find out more about what our Loyalty offering  has to offer you.

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Need more help or advice?

Let one of our property experts call you back.

Call me back

Call us on:

0860 111 007

E-mail us at:

General account enquiries: home@absa.co.za

Home loan applications: propertyhub@absa.co.za

Battling to make home loan repayments: bondrs@absa.co.za

Homeowners comprehensive insurance: adminhoc@absa.co.za

Life insurance: polserv@absa.co.za

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