14/07/2024
Did you know that 1 extra payment on your bond, lets say your 13th cheque/bonus, could slash your bond by 8 years
Lets assume your 13th bonus is around R20 000 net (after deductions) for this example, and your bond is about R700 000...
Your monthly repayment will be about R7700 @12% interest
Your total interest will be R1.149million
Your total repayment over 20 yrs will be R1,849mill
By paying your 13th bonus on your bond every year...
Your total interest drops to R620K (instead of R1,149m)
Your total repayment will be R1,32mill (instead of R1,849m)
And your total repayment months dropa from 240months (20years) to 143 months (12 years)
Something to think about 😃