In Episode 14 of The Property Buyers Guide, Justina Hamupembe, also known as YourHomeGirl, sits down with returning guest Rozina Jacobs, FNB Home Loans Sales Support Manager, to explore additional financing options for homeowners.
They break down prepaid loans, re-advances, and further bonds—helping homeowners understand how they can access extra funds when needed.
Q1: What are the different options for additional home financing?
Rozina:
Homeowners who need access to extra funds have three main financing options:
- Prepaid Funds: If a homeowner has made extra deposits into their home loan account, they may have access to these prepaid funds. This allows them to withdraw the extra payments they’ve made over time.
- Readvance: A readvance allows a homeowner to borrow the difference between the original bond amount and their current outstanding balance. This can be useful for renovations or debt consolidation.
- Further Bonds:Â This refers to a second, third, or subsequent mortgage bond taken out on the same property, allowing homeowners to borrow additional funds.
Q2: Can a homeowner have more than one bond on a property?
Rozina:
No, a property can only have one registered bond at a time. However, a homeowner can own multiple properties, each with its own bond.
Q3: What should homeowners consider when looking into further financing options?
Rozina:
The most critical factor is affordability. Before taking on additional debt, homeowners should evaluate:
- Their income stability
- Their current loan repayments and overall debt exposure
- The long-term financial impact of additional borrowing
Conclusion
Justina wrapped up the discussion by thanking Rozina for breaking down these financing options. Understanding how to access additional funds through prepaid accounts, readvances, or further bonds can help homeowners make smarter financial decisions.
Stay tuned for more home-buying insights next week on The Property Buyers Guide!
