Use the Nedbank Money app or Online Banking (features tab) or call the Nedbank Contact Centre on 0800 555 111 to request settlement or bond cancellation.
What will happen to your account?
Settling a bond does not mean that you have closed your home loan account.
Let's take a quick look at the difference between the 2 and how you can benefit from either selection.
1. Settle and keep account open
Your home loan account will remain open even after you have paid the loan off. If you choose to keep it, you'll have continued access to our further lending solutions – paying only the monthly service fee and any applicable insurance premium.
2. Cancel bond and close account
If you wish to cancel your bond, an attorney will be appointed for you by the bank. This process can take up to 3 months and a bond cancellation fee will apply. Once the bond has been cancelled at the deeds office, you will no longer have an account with us and will receive the title deed to your home.
From bond cancellation to getting the title deed, here's what to expect.
1. Settle loan
Once you have settled your loan, you can request cancellation of your account on the Money app, through Online Banking or by calling us on 0800 555 111.
2. Transfer insurance
If you have a homeowner’s cover with us and the premium is included in your home loan instalment, you’ll need to move the premium cover to your transactional account. For help, contact the Nedbank Insurance Team on 0800 333 111.
3. Appoint an attorney
We will appoint an attorney to handle the cancellation process with the deeds office. You will be responsible for paying the bond cancellation fee to the attorney for their services rendered to you.
4. Get your title deed
Once your bond has been cancelled, we will arrange for your title deed to be sent to you. Up until this point, your title deed is kept securely at the bank.
Selling your home?
We recommend you keep the following in mind if you have an outstanding balance on your loan and are selling your home:
- Provide us with a 90-day notice of account closure. If this notice is not given, an early-termination fee will be charged.
- The termination fee will be equal to the interest you would have been charged for the remaining loan period, but no more than 3 months’ interest as stated on your home loan agreement.
- Your notice will be valid for a year, and if you do not close your home loan account within this time, you will have to give us another 90-day notice.
What happens if you don't cancel your bond?
If you don’t cancel your bond, your home loan account will remain open and the title deed of your property will remain with us. You’ll, however, continue to pay the monthly service fee and insurance premium until you cancel your bond.
Keeping your home loan account open can be useful if you want to access funds or apply for a further loan. This method of borrowing is always better as you can loan money over a longer period, and at a much lower interest rate.
Once your home loan term has been reached, we won’t be able to secure any additional funds for you and you will need to follow the process of cancelling your bond.
