Bond Repayment Calculator
June 26, 2014
So you and your spouse have made the decision to buy a house. How will you enter this transaction safely? Of course you should be getting a bunch of quotes online so that you can compare the best payment options. But there are other ways to prepare yourselves too. Use a bond repayment calculator, for a start.
A bond repayment calculator is a wise application to try before applying for a home loan. Together with other calculators, you as the lender can get a good idea of what you are able to manage. When it comes to paying back home loans in SA, you want to be sure you don’t sink. Many have and are in a hole of debt because they failed to prepare for their payments.
SO GET PREPARED by reading about online calculators here. The following will give you some insight into how you can get more done in less time:
Home loan calculator South Africa
You can tell a lot about what your financial abilities are through using a bond repayment calculator. FNB have a very good home loan repayment calculator online which is so easy to use. Other banks and lending companies boast their own versions of this application.
For the sake of this discussion, let’s just analyze one of them. Better Bond have several calculators that are very useful. Let’s look at how three of them work:
- The bond repayment calculator: First, you fill in the full purchase price of your house. Then, you type in the deposit you will be laying down. The interest calculation will already be set at 9% (FNB’s calculator is set at 9% too). Press ‘calculate’. The total bond amount will be calculated and below you will get various options on repayment terms. What an easy way to calculate repayments on a loan!
- Affordability calculator: This is just as useful. Simply type in yours (and your spouse’s) total monthly income after tax. Then, calculate your total expenses and add it in. The calculator will work out how much you can pay and what you can get for your instalment. This is especially useful when it comes to home loans for blacklisted people. If you owe old debt, you can check to see what is doable for you.
- Bond calculator: This is a little different from the bond repayment calculator in that you can choose the number of months yourself. Punch in your purchase price, deposit and number of months you would like to spend paying the bond back. This is probably the most common bond calculator South Africa offers online users.
Most lenders have a loan repayment calculator available for customers. Bond originators actually encourage lenders to use a bond repayment calculator before taking on a home loan. Why? Because it’s in theirs, yours and the lending institution’s best interests that you can afford it.
No bank or lending company wants you to end up in debt. If you can’t pay, they don’t get paid either. This is why companies have put free mortgage calculators up on their websites. It’s a great way to educate and prepare buyers beforehand. Start your search for an affordable mortgage loan by using a bond repayment calculator.
All info was correct at time of publishing