Consolidate Your Debt & Stress Less

Consolidate your Debt and get some Financial freedom 

The value of your fixed property will increase in value over time. This means that if you’ve owned your home/property for several years or you have done some home improvement on the property, the likelihood is that it is worth more now than it was when you purchased it, there for it did increase in value. When Bondfin Assist helps you to refinance your home, you’re securing a new mortgage for your property based upon its current value, and not on the amount it was valued at when you took out your initial home loan. That means much needed cash can be paid out to you from the extra value that is available in your property value.

This gives you access to equity that you can use to improve your standard of living or strengthen your financial standing.

What is equity?

If you owe R 700 000 on your home loan, but your home is worth R 1 400 000, there’s a R 700 000 difference in value. This is known as “equity” the cash value that you can get. Through home refinancing, you can apply to access this equity or cash value. Basically, equity is the cash difference, in value between what you owe on an asset, and the current value of that asset.

There for if you refinance your home for its current value, you could access the equity or cash value accumulated in your property. Essentially, it’s a line of credit being extended by the financial institutions, and thus you will pay interest on it.  However, if you secure low interest rates, such as those offered by the 5 major banks in South Africa, they will offer valuable means of improving your financing position or paying for major or unavoidable expenses.

Consolidate your debt and pay one account every month

Debt Consolidation is a debt management tool that reworks your multiple debt accounts into one, affordable, repayment plan. By doing this, you can use your extra equity that is available in your property to pay off short term debts such as credit cards, personal loans, clothing accounts, motor vehicle finance, while enjoying the same interest rate on all of your paid up outstanding debt. You will have to still pay off the consolidated loan over the approved term. However, you’ll be paying a lower interest rate, saving you a lot of money every month and making your credit profile a lot healthier. 

In more simple terms it’s paying off and settling all or most of your accounts and then landing up at the end of every month paying only the one loan account.

How much will I need to Consolidate my Debt?

You have to make the following calculation for yourself, here is an example for you:

MY TOTAL DEBTS
Debtor 1* Loan total R12 000.00
Debtor 2* Clothing Total R10 000.00
Debtor 3* Credit Card Total R35 000.00
Debtor 4* Car Total R207 000.00
Debtor 5* Loan Total R80 000.00

TOTAL R344 000.00

MY REPAYMENTS PER MONTH
Repayment R850.00 per month
Repayment R948.00 per month
Repayment R2300.00 per month
Repayment R6022.00 per month
Repayment R1000.00 per month

TOTAL R11120.00

You will need on the above example a total of R344 000.00 to consolidate all your debts. 

Your repayment on a Debt Consolidation loan against your property based on the R344 000.00 depending on the interest rate, will be a total repayment of +- R3000.00 per month. There for you will consolidate all your debts and will have a saving of R8 120.00 per month based on the above example. The client paid before on the above example on all his debts a total of R11 120.00 every month and now after paying it all off in full (Debts Consolidating) his new payment will be R3000.00 per month. (R11 120.00-R3000.00=R8 120.00)

PLEASE NOTE

Please note due to the relationship Bondfin Assist has got with the financial institutions the equity/cash value in your property will be paid out to you directly for you to use the funds wisely and Consolidate your Debts. If you decide you want to go to the banks directly you can but all of the banks will not help you especially if you have got an existing bond on the property. Let’s say your bank will help you but as soon as the bank gets the application at head office they will ask you what do you want to use the extra funds for? If you say you want to use it for debt consolidation, they will only give you cash on the bond for home improvements in order for the value of the property to increase. They will then require quotations from building contractors that is approved on their panel and for home improvement plans to be drawn up and approved by the local council. Now, if that is all done then they will only pay out directly to the contractor as and when the work is completed and not to you. Please do not panic we are here for you the client as we have mentioned. Bondfin Assist can get you the equity/cash value in your property and the funds will be paid out to you, no questions ask and you can do with the money as you please. We have to make sure and ask you to please Consolidate your Debts and use the funds wisely and not to make irresponsible decisions.

Guide to get a Loan to Consolidate your Debts

If you’re thinking about effective ways to release cash, reduce monthly expenditure and improve your financial position, consider these simple steps towards refinancing and get cash out.

Arm yourself with information

If you speak to one of our consultants, they can assist you and Calculate for you the amount and get a detailed breakdown of what we may be able to offer you.

Choose an application option

  • Apply online with your details and we will contact you.
  • Call our Sales Contact Centre on 011 100 4777 to discuss your home loan solution needs with one of our specialist consultants.

Send us your documentation

Send us the required documentation. Thereafter your consultant will do the rest.

Documentation requirements

You’ll need to provide us with the following documentation

If you are an employed individual:

  • Proof of income: Your latest up to date salary advice for the last 3 months. If you earn weekly or every fort night we will still need all the salary advices for 3 months up to date (for both applicants and all parties involved in the application if applicable).
  • Latest 3 months up to date personal bank statements (for both applicants if applicable). (if you have more than one bank account we will need 3 months bank statements from all of the trading accounts)
  • Personal Assets & Liabilities Statement for loan amounts over R1 500 000.
  • Copy of your ID document (for both applicants if applicable).
  • Copy of Marriage Certificate or ANC Contract (if applicable).
  • Latest 12 months up to date bond statements. (If property is paid up a copy of the title deeds)
  • Latest rates/Levy Statement/Utility account statement.

Note* Only required for clients that are applying for a cash loan/refinancing home/property  

If you are a self-employed:

  • Proof of income: Letter of Earnings from an Accountant (for all applicants if applicable).
  • Latest 6 months personal bank statements (for all applicants if applicable).
  • Personal Assets & Liabilities Statement.
  • Latest 6 months business account bank statements. (if your business is trading out of more than one bank account we will need 6 months business bank statements from all of the trading accounts)
  • Latest 2 years’ Annual Financial Statements.
  • Where Annual Financial Statements are older than 6 months to date, Current Management Accounts not older than 2 months signed by the applicant and accountant must be provided in addition to the Annual Financial Statements.
  • Copy of your ID document (for all applicants if applicable).
  • Copy of Marriage Certificate or ANC Contract.
  • Copy of Registration Documents or Trust Deed.
  • 12 months bond statements or copy of the title deeds 
  • Latest rates/Levy Statement/Utility account statement. 

Property Valuation

An expert appraiser will arrange an appointment to do an assessment value on the property.

Sign a letter of acceptance

Once the application has been credit approved, we prepare a loan proposal. This document details the costs, interest rate, indicative instalment and other important information for you to evaluate and sign.

Conveyancing

The national panel of attorneys that is on the bank’s panels will prepare all the necessary bond registration documents and will make an appointment with you to sign them.

Lodgement

The lodging of your bond registration is the next step and it happens immediately after you sign your documentation at the attorney.

Await registration

Registration of your bond at the Deeds Office will take approximately 2 to 4 weeks.

Once your loan is registered against your property, we will continue to provide you with personalised service and attention, and all the while you are still living in your house/property.

Are you ready to Register for a Cash loan to Consolidate your Debts?

Contact us today to discuss your options with one of our trained staff members

The Process in Registering a Cash loan to Consolidate your Debts

Step 1

The Bond Attorneys (appointed by the bank registering the bond) request the draft deed and guarantee requirements from the Cancellation Attorney (appointed by the bank cancelling our Client’s existing bond). This information is forwarded to the Bond Attorneys then proceed to draft bond documents.

Step 2

Bond documents are drafted, signed by our Client and the guarantees are forwarded to the Cancellation Attorneys to obtain consent for the cancellation from the Client’s existing bank.

Step 3

Once all documents have been signed, the Bond Attorney arranges for lodgement of the documents.

Step 4

Once lodged, the Deeds Office takes approximately 4 – 6 working days to process the documents before registration takes place.

Step 5

Payment is made to you the client on date of registration of the loan against your property in order for you to consolidate all of your debts.

Delays could be caused by:

  • Failure by the client to provide personal information.
  • Failure by the client to provide details of the bank holding the existing bond.
  • The existing bondholder not providing cancellation figures and title deeds to the Transferring Attorney.
  • The client delays the signing of the bond documents.

We will call you back!

We’re pleased to meet you. Complete the form to have one of our administrators call you to explain how our services can benefit you whether you’re looking to own a new home, property or consolidate your debt.

Give Us a Call: 011 100 4777