You are Here > Home > Podcasts > Listen: How to pay off your home and car

Listen: How to pay off your home and car

Oct 16, 2020

If you are confused about how advance payments work when it comes to your home loan and car finance, you are not alone. In this podcast, Maya (@mayaonmoney) and Mapalo (@womanandfinance) unpack exactly how access bonds work and when advance payments on your car can be used to settle the balloon payment.

3 Comments

  1. Dear Maya. My husband and I purchased a house in 2018 for R1 650 000. We paid in R200K as a deposit towards the house. Shortly thereafter I resigned from my work. We used some of the funds to build rooms which we are renting out. We are left with about R345K. Is it wise to pay it into the house ? We want to finish the house sooner. If we start paying R15K every month from January 2020 how long will it take us to settle the house. The balance is now R1 374K. Thank you

    Reply
    • I play around with the Nedbank home loan calculators when I want to see the impact of additional payments https://www.nedbank.co.za/content/nedbank/desktop/gt/en/personal/tools-and-guidance/calculators.html
      It would not be right for me to advice on what you do with the lump sum as there are a lot of other factors to consider such as whether or not you have sufficient funds for retirement etc. If you put the lump sum into the bond make sure it is accessible in the case of an emergency. You need to make sure you are putting money away for retirement – you cannot eat your house!

      Reply
  2. Thanks Maya, been following your advise, R500 extra makes huge difference in number of months cut off

    Regards

    Reply

Submit a Comment

Your email address will not be published. Required fields are marked *

Maya Fisher-French author of Money Questions Answered

Previous Articles

SARS gets serious over non-compliance

Jashwin Baijoo, Legal Manager, Africa Tax and Compliance at Tax Consulting SA, warns all non-compliant taxpayers that SARS could be coming for them sooner rather than later. In media statements in recent months, the South African Revenue Service (SARS) has made clear...

Should I use my retirement lump sum to settle my debt?

A question that I often receive is whether it's a good idea to use one's lump sum on retirement to pay off short-term debts, such as car debt or one's credit card. For example, Ntombise recently wrote to me: “I have just retired from work and expect a lump sum...

The 2022 survival budget

As if the last two years were not tough enough, there is no silver lining awaiting us in 2022. In 2021 we absorbed further fuel-price increases, a 15% hike in electricity costs, and an interest-rate increase of 25 basis points – and this is only the start. It is...

Listen: Are you in a financially abusive relationship?

Are you the victim of financial abuse or are you perhaps unwittingly the abuser? And how would you even know? In this podcast, we discuss the very sensitive topic of financial abuse: how money is often used to control people in relationships. Maya (@mayaonmoney)...

Listen: Is cash now trash?

Despite the recent rate hike, interest rates since the beginning of the pandemic have fallen by around 30%. This is great news if you’re borrowing money, but it is pretty dire for anyone investing in cash or relying on income from cash investments. In this podcast...

Pay off my bond or invest?

Stephen Katzenellenbogen and Brendon Wright of NFB Private Wealth Management address a common dilemma faced by many: should I put all of my spare cash into my bond, or invest it instead? Many people are working towards the goal of being free of all debt, including...

Listen: How to bootstrap a business with R6 500

In this podcast Maya (@mayaonmoney) speaks to Mantsha Pheeha, a business strategist at Talent Unleashed, about how to bootstrap your startup by creating a pilot project. Mantsha worked with Nocawe, winner of this year’s Absa City Press Money Makeover Challenge, to...

Listen: Advance payments on your car finance

We did this podcast a year ago, about paying off your vehicle and home loan sooner – but I thought it was worth sharing again, as Absa has now released updates on its banking app for car finance. Absa car finance customers can use the app to pay in additional funds to...

When debt review works

Going into debt review is like going on a diet: it’s difficult to stick to and the results won’t be immediate, but it can be life changing. While there are serious issues around the way some debt counsellors conduct themselves, for Grace Bekwa, debt review gave her...

Listen: Creating generational wealth

Generational wealth is passed down from one generation to the next. But ultimately it has different context for different people. Generational wealth doesn’t have to be the Oppenheimer’s legacy. It could be leaving your children enough money to buy a home, or the...

Pin It on Pinterest

Share This