A little goes a long way, especially when it comes to your home loan. Paying a little more into your home loan every month can make a huge difference. Let’s look at how extra payments can help you get the most out of your home loan.

What it means for your home loan

Reduced term

You could shorten your repayment period.

Savings on interest

You could save yourself money (on interest) over the term of your home loan.

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Reduced balance

Your home loan balance could be reduced.

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Access funds anytime

You could access the extra funds from your home loan should you need it.

An example of how you could benefit

(Please note: the amounts shown below are simply examples of a potential scenario)

  Paying extra each month Paying in a lump sum
Loan  R1 000 000 R1 000 000
Term 20 20
Interest 8.75% 8.75%
Estimated installment amount R8 800.00 R8 800.00
Extra payment R200.00 monthly R50 000.00 once off
Estimated term reduced by 1 year 0 year
You could save approximately  R75 000.00 R105 000.00

The above is on the total cost of your loan

Accessing your FlexiReserve

It is important to note that depending on the remaining term and outstanding balance on your Home Loan, the full pre- payment may not be available to withdraw at a time in the future. Read more about FlexiReserve for more details.


Paying your home loan off sooner

Paying more into your home loan is always a good idea. Besides saving you money it also means you will own your home sooner. As one of the bigger investments in your life, your home loan deserves to be managed well, so paying extra when you can could be a good idea.


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Need more help or advice?

Let one of our property experts call you back.

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