The Bond Man - Property Finance Consultants


Ayoba - Now is the time!Issue 17 / June 2010


The Greatest Show on Earth kicks off on Friday, and despite the alarming drop in the number of expected overseas visitors, this will be the best opportunity we've ever had to showcase our magnificent city and the rainbow nation to the world.

On the home loan front, things are finally looking up, as more banks reintroduce 100% bonds. Salaried applicants with a clear credit record have never had it so good! Interest rates are at their lowest levels in 30 years and some analysts predict that the recent drop in the Purchasing Managers' Index |(PMI) leaves the door open for another interest rate cut, in spite of the Reserve Bank's earlier indications that rates should stay on hold. And although FNB's latest house price index showed a further acceleration in house price growth from 10,1% to 11,9% in April, the current buyer's market seems set to remain until at least the end of the year.

Self-employed applicants still find it difficult to secure bond approvals, but only if they're not able to prove their income to the banks' satisfaction. Ensure that your financial statements are up to date and choose a competent bond consultant to motivate your application properly, and you shouldn't have a problem.

Changes in the Home Loan Rate - South Africa

5 things you should know about your bond

1. Your own bank will seldom give you the best home loan deal.

This trend has become more and more evident over the past year, as banks try to woo new clients from their competitors. Moreover, we're seeing a sharp rise in instances where bonds are being declined by a client's traditional bank and approved by another bank with which the client has no connection.

2. Your bargaining power ends the day your bond is registered.

If you've ever tried to get your bank to lower your bond rate, you'll know what I mean. Make sure your bond originator shops around among the various lenders to secure the best possible rate concession. It's too late to seek a better deal once your bond is registered and switching your bond from one lender to another is no longer viable.

3. You must give 3 months' notice to cancel your bond.
When you sell your property, you should give the bank 90 days' notice of your intention to cancel your bond. If you don't, you'll be charged a punitive cancellation penalty equal to 3 months' interest. On a bond of R1million, this is like throwing R25 000 down the drain. The banks are inflexible on this cancellation penalty, and will no longer waive it, even if you place your next bond with the same bank.

4. Voluntarily increasing your monthly payment by a small amount will knock years off the term of your bond.
The miracle of compound interest! Play around with the Bond Calculator on my website and you'll see that by repaying an extra R312 per month on a R1m bond, you'll knock 5 years off the term of a 20 year bond and save yourself R433 160!

5. Make sure you're getting the best insurance deal
Homeowners Comprehensive Insurance is compulsory if you have a bond. In the past, this cover was provided automatically by the bank (the mortgagee) and you were not allowed your own choice of insurer. Now you, the mortgagor, can shop around for the insurance cover that best suits your needs, and your pocket. Be aware, though, that should you choose an outside insurer, the bank may levy a monthly "admininstration fee" on your bond and this could negate the effect of a cheaper premium.

Cape Town's new ferris wheelwin, win, win!

Win a ride on Cape Town's new ferris wheel
... 6 tickets are up for grabs!

Football and politics in Latin America are inseparable - it is impossible to have one without the other. The future of many regimes has been decided by the outcome of a football match and nothing seems to ignite national fervour more than pride in your team. There is one match in particular which remains a testament to just how seriously people take their football in Latin America. It all started on 8 June, 1969, sparked by rioting during a qualifying round for the 1970 FIFA World Cup , and ended four days later with thousands dead and the future of two countries in the balance.

QUESTION: Which 2 countries fought the Football War?



There's no point in starting your property search unless you know the bond amount for which you'll qualify.

Send a copy of your salary slip and a list of your monthly expenses to The Bond Man and we'll do the sums that will set you on your way to becoming a property owner!


I wish you all a joyous and exciting month of World Cup activities. 


Gary Peterson
The Bond Man

  Gary Peterson - THE BOND MAN


44 Vredehoek Avenue

44 Vredehoek Avenue

Behind blue walls and a glittering mosaic entrance lies this gorgeous, quirky character home with a sense of style and fun. Whether you're a creative couple or a small family, this home is bound to make you happy. Accommodation comprises 3 spacious bedrooms and a separate guest suite or cottage.

44 Vredehoek Avenue

44 Vredehoek Avenue

44 Vredehoek Avenue

44 Vredehoek Avenue

Asking Price: R 3 200 000

Contact Louise Killeen for an appointment to view.

083 351 6744
(021) 424-2211

Kapstadt International


Certain banks have stopped lending to Trading Entities, i.e. companies, close corporation and trusts engaged in activities that are not primarily property investment related.

This will not affect juristic entities (companies, cc's & trusts) that are registered purley for property investment purposes.


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Fax: 0866 9033 04
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Office address:

45A Joubert Road
Green Point