Cancelling your bond

A step-by-step guide to cancelling your home loan following the sale of your property.

Has your family grown too large or have you found a new home of your dreams? Whatever the reason, we can make the process of cancelling your home loan easier. Follow our simple guidelines to take control of your bond.

Step 1

Send a Cancellation Notice
If you are thinking of selling your home, we require formal notification of your intention to cancel your home loan. At SA Home Loans, we require a 90-day notice period, which will avoid the raising of the Early Termination Charge. You can contact our Helpdesk on 0861 888 777 or email [email protected].

We can also give you more information with regards to renewing your notice should your property not be sold by the time the 90 days expire.

Step 2 

Request the Cancellation Figures when the property is sold
As soon as you sell your house, appoint a legal representative to manage the transfer. This Attorney will formally request your cancellation figures, conditions and guarantee requirements from SA Home Loans. At the same time, the title deeds and bond documents will be sent to our cancelling attorney.

We have a set panel of pre-approved Attorneys who have authority to act on our behalf. Therefore, we will nominate a trusted legal representative to tend to the cancellation on your mortgage bond.

What are Cancellation figures?
Valid for a period of 90 days, the total figure will include:

• Your outstanding loan balance on the date that this information is issued
• One month’s instalment which is a contingency amount
• Monthly Service Fees
• Home-owners Insurance Premiums - if applicable
• Bond Protection Premiums - if applicable
• Early Termination Charge
• Legal Fees - if applicable due to Legal Proceedings

Please note: Interest will be calculated from the date that the figures are issued up until payment is received.

Are there any other charges involved?
Yes. However, these costs vary according to your personal circumstances. In addition, the attorney who acts on our behalf charges a fee for the official home loan cancellation at the Deeds Office.
This amount is not included in the figures above.

Step 3 

Cancellation refunds
Any excess funds received after the cancellation has been registered in the Deeds Office will be refunded to the client or attorney’s bank account.

Step 4

How long does the process take?
The time taken varies, but if the property has been sold, the average time for a transfer to be completed is around three months unless there are other considerations, e.g. deceased estate, early settlement of the bond. That being said, it can take longer if simultaneous transactions are linked to the transfer, i.e. the cancellation of your existing bond and the registration of a new one.

If you’re switching your mortgage to another financial institution, registration and cancellation can take up to 6 weeks, if not longer.

Should you wish to cancel the bond after settling the loan, it can take up to 4 weeks to finalize at the Deeds Office provided that the attorney costs are paid timeously.

Please note that your monthly bond repayments must be maintained during the home loan cancellation period.

Kindly contact our Client Services Help Desk on 0861 888 777 or email [email protected] should you have any further queries.