For many South Africans, the dream of owning a home outright can feel distant. On a standard 20-year bond of R1 million at today’s prime rate, you’ll end up paying more than R1.44 million in interest alone. But with the right strategy, you could shorten that timeline dramatically and save hundreds of thousands of rands along the way.
Start with affordability in mind
The simplest way to become bond-free sooner is to buy within your means. Choosing a slightly less expensive home not only makes monthly repayments more manageable, but it also creates room in your budget to pay extra into your bond. For example, a R750 000 bond requires lower monthly instalments, and the additional amount needed to clear it in 10 years is more affordable than trying to do the same on a R1 million bond. The savings on interest can be significant.
Read more: How to Buy Your Home: The process for buying your perfect
Consider your deposit carefully
While saving for a 20% deposit may feel impossible, even a modest deposit can help. It reduces the size of your loan, improves your chances of home loan approval, and may even secure you a preferential interest rate. A small reduction in interest, even as little as 0.75%, can shave years off your repayment term if you commit to paying that saving back into your bond.
Think long-term, plan smartly
Buying a smaller home now can also help you later. If your family grows, the proceeds from selling that first home can give you a substantial deposit for your next property. That puts you in a strong position to negotiate a better loan and repayment plan the second time around.
Read more: Small home, big impression
Work with experts
Bond calculators and affordability tools, like those offered by BetterBond, can help you understand your financial position before you commit. Speaking to property experts can also give you a clearer picture of your options and keep your journey to becoming bond-free on track. Explore more resources with Chas Everitt’s buyer advice to make informed decisions at every stage.
Becoming bond-free in 10 years takes planning and discipline, but it is far from impossible. Start with smart choices, use every advantage available, and keep your long-term goals in mind.
Ready to explore your options? Chat to a Chas Everitt property expert today and take the first step towards a bond-free future.
