 Why is important to let the bank know of your intention to cancel your bondMost South African banks expect 90 days' written notice before you cancel your home loan. If you cancel sooner, they can charge an early termination fee (often called "90-day penalty interest").
By: Lake Properties Most South African banks expect 90 days' written notice before you cancel your home loan. If you cancel sooner, they can charge an early termination fee (often called "90-day penalty interest"). The fee is essentially up to three months' interest on your outstanding balance, and it reduces day-by-day as your notice period runs down. If your bond is cancelled after day 90, the early termination fee is R0. Legally, this sits under section 125 of the National Credit Act, which lets a credit provider levy an early termination charge within clear limits. In practice, banks implement it as "up to 90 days' interest, less the notice you actually gave What counts as "notice" and when should you give it? http://www.lakeproperties.co.za Form: Send written notice to your bank's home-loans department If you know of anyone who is thinking of selling or buying property, in Cape Town ,please call me Russell Lake Properties info@lakeproperties.co.za www.lakeproperties.co.za info@lakeproperties.co.za End
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