Author: SA Home Loans
Cancelling your bond
Step-by-step guide to cancelling your home loan following the sale of your property.
Has your family grown too large or have you found the new home of your dreams? Whatever the reason, if home loan cancellation is on your mind, we can make the process easier. You just need to follow our simple guidelines and confidently take control of your bond.
Step 1 – Send a Cancellation Notice
If you are thinking of selling your home, we require formal notification of your intention to cancel your home loan.
At SA Home Loans we require a 90 day notice period, which will avoid the raising of the Early Termination Charge. We can also give you more information with regards to renewing your notice should your property not be sold by the time your 90 days expire.
Step 2 – Request the Cancellation Figures when the property is sold
As soon as you sell your house, appoint a legal representative to manage the transfer. This Attorney will formally request your cancellation figures, conditions and guarantee requirements from SA Home Loans. At the same time, the title deeds and bond documents will be sent to our cancelling attorney.
We have a set panel of pre-approved Attorneys who have authority to act on our behalf. Therefore, we will nominate a trusted legal representative to tend to the cancellation on your mortgage bond.
What are cancellation figures?
Valid for a period of 90 days, the total figure will include:
- Your outstanding loan balance on the date that this information is issued
- One month’s instalment which is a contingency amount
- Monthly Service Fees
- Home Owners Insurance Premiums – if applicable
- Bond Protection Premiums – if applicable
- Early Termination Charge
- Legal Fees – if applicable due to Legal Proceedings
- Please note: Interest to be calculated from the date that the figures are issued to when payment is received
Are there any other charges involved?
Yes; however, these costs vary according to your personal circumstances. In addition, the attorney who acts on our behalf charges a fee for the official home loan cancellation at the Deeds Office.
This amount is not included in the aforementioned figures.
Step 3 – Cancellation refunds
Any excess funds received after the cancellation has been registered in the deeds office will be refunded to the client or attorneys bank account.
Step 4 – How long does the process take?
As there may be other reasons as to why you are cancelling your home loan (e.g. deceased estate, early settlement of the bond) the time may vary. However, if the property has been sold, the average time for transfer is around three months.
That being said:
- It can take longer when simultaneous transactions are linked to the transfer, i.e. the cancellation of your existing bond and the registration of a new one.
- If you’re switching your mortgage to another financial institution, registration and cancellation can take up to 6 weeks, if not longer.
Should you also wish to cancel the bond after settling the loan, this can take up to 4 weeks to finalize at the Deeds Office provided that the attorney costs are paid timeously.
Please note that your monthly bond repayments must be maintained during the home loan cancellation period.
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