Two Options to get an Access Bond
INVESTING
What is an Access Bond ? An access bond is a home loan that allows borrowers to withdraw surplus funds they have deposited into the bond whenever needed . Or in other words , with an access bond , any additional money you pay into your bond , you can access again when needed .
All banking institutions offer access or flexi bonds . This arrangement enables homeowners to enjoy the advantage of paying interest on a reduced principal amount while still having the flexibility to access the extra money if or when required . Some banks call an access bond a flexi bond . interest rate without incurring taxes on the interest saved . This approach typically yields higher returns compared to other investment options available . Keeping your surplus money in an access bond is also a sensible choice because it provides the best risk-free return on your investment . This makes it an ideal avenue for accumulating tax-free savings .
The great thing about an access bond is that any money you pay into it is considered a loan repayment , reducing the interest charged since a smaller capital amount is
Two Options to get an Access Bond
1 . You can either include the access bond feature in your home loan application and have it approved simultaneously , or 2 . You can apply for the facility separately after your bond has already been registered .
Why use an access bond ? Depositing surplus money into your home loan account is a wise investment strategy . By doing so , you effectively save at the loan ’ s now outstanding . This either reduces the monthly bond payment or the monthly bond payment remains the same , but the bond is paid off quicker as
35 JULY / AUG 2023 SA Real Estate Investor Magazine