Paying your bond in eight years
Ben Mohlamme wrote:
I bought a house for R350 000. I am currently paying a monthly instalment of R5?000 and want to pay off the house in six to eight years. How can I achieve this?
I am doing my calculations based on the full loan value of R350 000 at an interest rate of 8.5%. The good news is that you are already paying in nearly enough to settle within eight years.
If you were paying for over 20 years, your repayment would be R3 037. By paying R5 037 you would settle the bond in 96 months (eight years) and save a massive R245 401 in interest.
Your current interest rate may differ from the above 8.5% and the total figure may be slightly different.
However, the banks offer useful home loan calculators that allow you to play around with repayment values.
www.fnb.co.za: Look at the top tabs and go to “contacts & tool” – click on calculators.
www.absa.co.za: Look at the top tabs and go to “calculate”.
www.nedbank.co.za: Go to the bottom of the page, in the Financial Tools box, and click “calculators”.
www.standardbank.co.za: On the right of the page click on “tools & calculators”.
Knowing your rights
Lawrence Rathebe wrote:
In your City Press Business article dated January 9 2011 about Stanley Mathabathe, you said under the National Credit Act (NCA) banks are obliged to provide a detailed reason as to why a loan is declined.
However, they always deny you that information and instead, send you to the Credit Bureau to pay for the information. What can you do in a situation like this?
In terms of the NCA the bank is required to assess the client’s credit behaviour and credibility.
Should a loan application be declined due to credit behaviour, the bank must indicate that as the reason for its decision.
In addition, the bank should provide the Credit Bureau’s contact details if a client wishes to obtain more information directly from them.
Apart from the bank informing you that you were turned down for a negative listing, they do not have to
provide further detail.
Obviously from a customer’s point of view it would be more helpful to provide the details of the negative listing, however, considering the volume of loan applications it might not be feasible.
You are entitled to one free credit report a year and you can use this to gain further information on your negative listing. If you feel the listing is inaccurate, you can contact the Credit Ombudsman on 0861 662 837.