Paying off your home loan
Paying off your home loan before the end of the term is a major milestone but it does not mean that the bond is cancelled.
If you would like to be in possession of the title deeds of your home, the bond must be cancelled in the Deeds Office, and there is an attorney cost associated with the cancellation of the bond. You can keep the bond open once the debt has been paid up in full in order to run your homeowners insurance premium through the account – this is not necessary and in the long run costs you in monthly service fees. You can redirect your insurance premiums to your transactional account.
More importantly you’ll need to decide whether or not you might still need access to funds from your home loan – you may want to access the funds available or do home renovations at some point.
Listen to our expert Home Loans advice here:
For expert advice on the house, chat to our FNB Home Loans Team of Experts.