Bond Refinancing Calculator
Thinking of switching banks? Enter your Total New Loan Amount (including any cash out) to see if a lower interest rate saves you money.
The Cost of Switching
- Penalty Interest
- If you don't give your current bank 90 days' notice of your intention to cancel the bond, they are entitled to charge you 90 days of penalty interest on your outstanding balance.
- Equity Release (Cash Out)
- Accessing the difference between your property's current value and your outstanding bond. This cash is often the cheapest financing available for renovations or debt consolidation.
- Assessment Rate
- When refinancing, the new bank will re-assess your creditworthiness. They will require latest payslips and bank statements just like a new application.
- Bond Registration
- Even though you aren't moving house, a new bond must be registered at the Deeds Office. This incurs attorney fees, though transfer duty is not applicable.
Switching Questions Answered
What does it cost to switch my bond?
Switching isn't free. You pay Bond Cancellation Fees (approx. R5,000) to close the old bond and Bond Registration Fees (sliding scale) to open the new one. However, the new bank rarely charges Transfer Duty.
Will the new bank cover my switching costs?
Often, yes. Many banks run campaigns offering to pay your cancellation and registration attorney fees if you switch to them, provided you stay for a minimum period (e.g., 3 years).
Can I take cash out when I refinance?
Yes. If your property has increased in value, you can apply for a loan based on the current value, settle your old smaller bond, and have the difference paid into your account as 'equity release'.
Get a Formal Quote PDF
Need a formal document for your bank application or client? Enter your email to receive a branded PDF breakdown of this calculation including transfer costs and amortization.
- Official Amortization Schedule
- Tax Certificate Format