HISTORICALLY, many homeowners, mostly those in the middle to lower income groups, have tended to skip bond payments over the Christmas period, using those funds for holidays, to subsidise Christmas shopping or to pay for pending school fees and school uniforms.
According to Saul Geffen, MD of MortgageSA, unless these homeowners make the payment up in January, which is unlikely, that skipped payment will end up costing them more than double in the long run.
'If you miss a monthly R 2 934 payment on a R200 000 bond, the capitalised interest on that, over a typical 20 year payment, will amount to almost R9 000, so homeowners should carefully consider the implications of missing a payment,' Geffen said
Publisher: Weekend Argus
Source: IOL
