For most homeowners, a bond (home loan) is the single largest financial commitment they will ever take on. While the standard repayment period is often 20 to 30 years, the good news is that with a few smart strategies, you can shorten this time and save a substantial amount in interest. Paying your bond off earlier not only brings financial freedom but also creates long-term wealth.
Pay Extra Every Month
Even small additional payments make a big difference. By paying just a little more than your required monthly installment, you chip away at the principal (the actual loan amount), reducing the total interest charged over time.
Take a look at this example of a R1,000,000 bond at 11.75% over 20 years:
Scenario Time to Pay Off Total Interest Paid
Standard (20 years) 20y 0m R1,600,897
Extra R500/month 17y 1m R1,318,604
Extra R1,000/month 15y 1m R1,132,763
Extra R2,000/month 12y 4m R895,403
- Just R500 extra per month saves you almost 3 years and about R282,000 in interest.
- With R2,000 extra per month, you cut nearly 8 years off your bond and save more than R700,000!
Make Lump-Sum Payments
If you receive a bonus, tax refund, or extra income, consider putting it directly into your bond. Unlike spending it, this once-off contribution reduces your outstanding balance immediately and saves you significant interest over the life of the loan.Use an Access Bond Wisely
Many banks in South Africa offer access bonds, which allow you to deposit extra money into your bond and withdraw it if needed. By keeping surplus cash (like savings) in your bond account, you reduce your daily interest calculation. This works like a savings account but with much higher returns in the form of interest savings.
Avoid Extending Your Bond Term
While refinancing or extending your bond term may reduce your monthly installments, it increases the total interest you pay over the life of the loan. Stick to your original term or reduce it if possible.
Keep Your Lifestyle in Check
The fastest way to pay off a bond is to redirect extra income into repayments instead of lifestyle upgrades. Even channeling just 10–20% of salary increases or bonuses into your bond accelerates your journey to financial freedom.
The Bigger Picture
Paying off your bond earlier doesn’t just save you interest—it gives you financial security, reduces stress, and frees up monthly cash flow that can be reinvested or used for other goals. For many homeowners, this can mean saving hundreds of thousands, or even millions, over the lifetime of their bond.
