The bond registration process usually concludes around three months after home loan approval. How long do you then have to wait to start paying off your bond?
Article summary
- Once your bond is approved, it takes around three months for it to be registered.
- Your first bond repayment will be debited from your account a month after registration, on a date chosen by you.
- You can elect to pay extra into your bond, in addition to what the bank debits from your account. Paying off your bond faster saves money in the long-term by reducing the amount you will pay in interest.
So your home loan has been granted by the bank, and the bond has been registered in your name. How long do you have to wait before you can start paying it off?
Here is an overview of the registration process, and what follows it.
How long does bond registration take?
On average it takes about three months from home loan approval to the bond being registered. During that period, the transfer of property process also occurs. Lawyers will guide you through every step of the process
To determine how much Bond registration and the transfer of property will cost you, use ooba Home Loans’ Transfer Cost Calculator.
The first bond repayment
The first repayment will be debited from your account a month after the bond is registered, on the date you selected.
If you’re unsure, the bank’s attorney can advise you when you sign the bond documents.
The bank should also send you notification of the bond being registered, along with the date of your first repayment.
It’s best to use the p[eriod between home loan approval and bond registration to put money aside for your first repayment.
To determine what your monthly repayments will be, use our Repayment Calculator.
Extra repayments can save you money in the long-term
In addition to your repayments, you will be charged interest for the home loan. This adds up to a sizeable amount over the course of the loan period.
Paying over and above the monthly repayment amount will pay off your bond faster, reducing the amount you’ll have to pay on interest.
Use our Extra Bond Payment Calculator to determine what your overpayments will save you in the long-term.
Of course, the most effective way to save money on your home loan is to use a home loan comparison service, such as ooba Home Loans. We can submit your home loan application to multiple banks, allowing you to compare deals and choose the one with the lowest interest rates.
We also offer a range of tools that can make the home buying process easier. Start with our Bond Calculator, then use our Bond Indicator to determine what you can afford. Finally, when you’re ready, you can apply for a home loan.
