Just something my wife picked up on a few days ago.
If you're selling your property ( maybe to buy something else ) and you're going to cancel your existing bond, the banks charge a cancellation fee.
So, quickly on the phone to our existing bond holder ( FNB ).
In our case, FNB require a 90 day notice period. For every day LESS that you give notice, you pay a cancellation fee.
The calculation that the FNB Home Loans Cancellation Department gave us was :
The bond balance
multiply by the existing bond interest rate
multiply by the number of days that your short of notice ( eg .. giving 30 days notice = multiply by 90 - 30 = 60 days )
divide by 365
divide by 100
and that's the amount of the penalty you'll pay.
Now on our bond balance of R5 it really makes no difference, but on a big bond, you could find yourself with an unexpected Early Cancellation Penalty Fee.