PENALTY INTEREST ON YOUR BOND?
Category FINANCE
Many of us purchase a home, finance it and when selling it, often - the amount we anticipate to be the proceeds and profit from our sale differs substantially.
It is imperative for all home owners whom has a financial instrument linked to their asset, to realize the cost implications when cancelling their bond.
Penalty interest can have a severe implication on your eventual proceeds and in some cases may even entirely diminish the capital growth you may have achieved on your asset.
Penalty interest is a matter generally addressed in your loan agreement and be it as it may, very few people ever bother to read the loan agreement they sign in the attorneys office simply because the excitement and prospect of a new home definitely overwhelms the formalities that has to be attended to.
Penalty interest has often and will be certain to cause many future unpleasant financial surprises to uninformed or non-suspecting asset owners.
The range of financial service providers have different policies relevant to the cancellation and more specifically, early cancellation of your loan agreement.
Take the time to scrutinize the table of contents associated with this article to be familiar with the policy relevant to your facility and your financial service provider.
The savings that emanate from you passing the required early cancellation notice in line with your financial service provider's policy might just cover some of the unforeseen expenses incurred towards your next purchase.
Also, whilst you consider giving that notice, be sure to consider our services in the Garden Route or Gauteng - Centurion when either Buying or Selling a Home.
Author: Greendoor and KPS
