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.

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Access equity

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

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Savings on bond costs

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

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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).

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0860 111 007

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home@absa.co.za

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