B
Loans
Bond (Home Loan)
A bond is what South Africans call a home loan — you borrow huge money to buy a house, the house itself is the security (they can sell it if you don't pay), and you pay it back over 20 to 30 years. Interest is linked to the prime rate, so when the Reserve Bank changes rates, your repayment changes too.
Usage Examples
"Lerato and Bongani saved a R150,000 deposit and got a R850,000 bond for their townhouse in Sandton. Their monthly repayment is about R8,500."
"When rates went up by 0.5%, Nomsa's bond payment jumped by R600 a month. Suddenly the budget was hectic and she had to tighten up on groceries."
"Paying extra into your bond is lekker smart if you can manage it. Zanele puts an extra R500 toward her bond every month and it'll save her about R200,000 in interest over 20 years."