WHAT HAPPENS IF THE LOAN IS PAID OFF BUT YOU DON’T CANCEL THE BOND?

If you don’t cancel the bond, the account stays open. The bank retains your property’s title deed, and you’ll still have to pay the monthly service fees and insurance premiums.

A benefit is that you can still use the account if you need to borrow money, and interest rates on home loans are generally lower than other types of loans. You’ll then have a monthly bond repayment again. This is usually only applicable if the repayment period (20 or 30 years) hasn’t lapsed. If the period is over, you can’t borrow from your bond anymore.