Thanks for dropping by Safe Investing South Africa. I am on a journey to build wealth my way. For any questions or comments, feel free to contact me.

20 Jun 2014

PAYING THE HOMELOAN FASTER

Latest reader's comment is on paying the homeloan faster.
I am so inspired by your blog. I have just bought a small house and from
reading your blog I now see that me and the bank can bond for a lot less
years if I take control of my finances. I need advice though, but I will save
that for another day. Thank you for putting all this out there."
Ncumisa, South Africa.
 Thank you and pleasure Ncumisa. I share this because I love it. I love it when people get out of debt and start building wealth.

And yes, you may pay up your bond faster. I received a call yesterday from someone who wants to pay up her home in just 5 years. From the calculation we realised that it can take her just below R17,000 to pay up her R800,000 home in 5 years. Well that depends on the interest rates that an individual is charged by their bank.

What people fail to realise is that, even R500 extra on their homeloan payments eats on the capital amount and makes a huge difference.

My advise to you would be
  • Start small with what you have;
  • Start now not next year;
  • Stay consistent... every month, every year, every quarter... just keep moving;
  • Plan an escalation. It may be 10% increase on your extra payments.
You may also do a lump sum payment from your annual bonus if you are lucky enough to have one of those. Every little bit helps in paying the homeloan faster.

Thanks again for your comment.
All the best in your financial freedom path.

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