4 . Advantages of Joint Bond Ownership Contracts
Applying for a joint bond with a partner , family member or friend can make home ownership more accessible . Up to 12 people can apply for a joint bond . Irrespective of how many people share joint bond ownership on a property , make sure that there is a clear contract in place .
This agreement should include information about the sharing of the bond and access to the bond , each person ’ s financial contribution and who is responsible for managing the property .
5 . Maximise savings using a Bond Originator
Working with a bond originator can mean a more favourable interest which will save you money on your monthly bond payments . By approaching multiple banks . At BetterBond for example we can negotiate an interest rate concession because the banks compete to offer the best deal based on your buyer risk profile .
Currently , the average interest rate concession when applying to four banks is 0.61 %. This means that you could pay up to 0.61 % less than the interest rate offered by the bank . On a R2 million bond , if the bank offers a prime lending rate of 11.75 %, you would pay an interest rate of 10.91 %, a saving of R1 153 a month .
Bradd Bendall , is the interim CEO of BetterBond .
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