Absa | Paying more into your home loan

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.

Reduced balance

Your home loan balance could be reduced.

Access funds anytime

You can access available funds from your Home Loan if you need it, using your Flexi Reserve facility.

An example of how you could benefit

(Please note: The example shown below is for illustration purposes only)

	Paying extra each month	Paying in a lump sum
Loan	R1 000 000	R1 000 000
Term	20 years	20 years
Variable interest rate	11.75%	11.75%
Estimated monthly repayment	R10 837.00	R10 837.00
Extra payment	R200.00 monthly	R50 000.00 once off
Estimated loan repayment period reduced by	1 year	3 years
You could save approximately over the term of the loan	R129 569.00	R377 194.00

The illustration above is based on the assumption that the monthly repayment is maintained for the term of the loan and is based on the total loan amount.

Accessing your Absa Flexi Reserve

It is important to note that depending on the remaining term and outstanding balance on your Home Loan Account, the full prepaid amounts may not be available to withdraw at a time in the future. Read more about Absa Flexi Reserve for more details.