B
Loans
Bond (Home Loan)
A long-term secured loan used to purchase property, where the property itself serves as collateral. In South Africa, 'bond' is the common term for what is internationally known as a mortgage. Home loans typically have terms of 20 to 30 years and are linked to the prime lending rate.
Usage Examples
"They applied for a bond of R1.2 million to buy their first home in Johannesburg."
"Her bond repayment increased by R450 per month when the repo rate went up by 0.5%."
"Paying extra into your bond each month can save you hundreds of thousands in interest over the loan term."