Bank your way with low fees and extra benefits.
Enjoy 55 days’ interest free credit and other benefits.
Affordable loans and interest rates from R2k to R300k.
Buy or build your home with up to 109% financing to cover bond and transfer costs.
Debt management support when you need it the most.
Cover for you and your family in the event of death.
Car, building, house contents, valuables and more.
Bond, credit card, overdraft, loan and car repayments.
Guaranteed income and growth plans for future income.
Achieve your financial goals with expert planning.
We’ll help manage your assets, debts and estate planning.
Accounts
-
Everyday banking Simpler more affordable
-
Kids accounts For children under 16
-
Youth banking For 16 to 26 year olds
-
Seniors accounts For 55 years and older
-
Private Clients Personalised banking services
-
Private Wealth The globally integrated account
-
Digital wallet Your phone is your bank account
Credit cards
Greenbacks
Digital banking
Switch to Nedbank
Fraud awareness
Forex
Accounts
-
On demand Money available at any time
-
In 24 hours Cash in your hand the next day
-
In 32 days Funds ready within a month
-
End of term Investments left until maturity
Investment services
Share trading
Personal loans
Home loans
-
Buy With you from search to purchase
-
Build Bring your dream home to life
-
Switch Move your home loan to us
-
Manage All the value-adds, 24/7
-
Further lending Flexible and affordable solutions
Overdrafts
Vehicle finance
Solar finance
Debt assistance
- Consolidate all your debts into a simple loan | Nedbank
- Short-term payment relief | Nedbank
- Take charge and restructure your finances | Nedbank
- Assisted-sales solutions for homes and vehicles | Nedbank
- Flexible payment plans for loans and credit | Nedbank
- Understanding how repo rate works | Nedbank
- We have payment solutions to get you back on track
Funeral cover
Short term insurance
Credit Life
Travel insurance
Business cover
Secure investments
Financial planning
Estate, wills & trust services
Nedbank Private Wealth
Speak to a financial adviser
Blog
Talk to us
Find us
- Login & Register
- Online Banking
- Online Share Trading
- NetBank Business
- NedFleet
- Nedbank Greenbacks
- Nedgroup Investments
- Nedbank ID
- Bank
- Accounts
- Credit cards
- Greenbacks
- Digital banking
- Switch to Nedbank
- Fraud awareness
- Forex
- Explore Bank
- Accounts
- Everyday banking
- Kids accounts
- Youth banking
- Seniors accounts
- Private Clients
- Private Wealth
- Digital wallet
- See all accounts
- Premium banking
- Get help choosing
- Goal saving
- Family Banking
- Foreign nationals
- FAQ
- How-to guides
- Discontinued accounts
- Everyday banking
- MiGoals Premium
- MiGoals Plus
- MiGoals
- Kids accounts
- MiGoals4Kids
- Youth banking
- MiGoals Premium
- MiGoals
- MiGoals Plus
- Seniors accounts
- MiGoals Premium Senior
- MiGoals Plus
- Private Clients
- Pay-as-you-use
- Young Professionals
- Private Bundle and Private One
- Private Wealth
- Private Wealth Bundle
- Digital wallet
- MobiMoney
- American Express
- Amex Gold
- Amex Platinum
- Greenbacks
- Exclusive discounts
- FAQ
- How-to guides
- Digital banking
- Switch to Nedbank
- Fraud awareness
- Forex
- Save & Invest
- Accounts
- Investment services
- Share trading
- Explore Save & Invest
- In 24 hours
- JustInvest
- PlatinumInvest
- Tax-free Savings
- MoneyTrader
- EasyAccess Fixed Deposit
- PrimeSelect
- In 32 days
- Electronic 32Day Notice
- 32Day Notice
- End of term
- Tax-free Fixed Deposit
- Electronic Fixed Deposit
- Electronic Optimum Plus
- Platinum Fixed Deposit
- Fixed Deposit
- OptimumPlus
- Investment services
- Share trading
- Borrow
- Personal loans
- Home loans
- Student loans
- Overdrafts
- Vehicle finance
- Solar finance
- Debt assistance
- Explore Borrow
- Personal loans
- Loan consolidation
- Personal loans
- Home improvement loan
- Exclusive short-term loan offers
- Explore loans
- FAQ
- How to guides
- Loan consolidation
- Personal loans
- Home improvement loan
- Exclusive short-term loan offers
- Home loans
- Buy
- Build
- Switch
- Manage
- Further lending
- Explore home loans
- Request a call back
- Track application
- FAQ
- How to guides
- Buy
- Explore buy
- First time home buyer
- Repeat buyer
- Renewable energy financing
- HomeVision
- Home-buying Toolkit
- Edge properties
- Repossessed properties
- Switch
- Explore switch
- Further lending
- Explore further lending
- Student loans
- Explore student loans
- Overdrafts
- Vehicle finance
- Solar finance
- Debt assistance
- Consolidate all your debts into a simple loan | Nedbank
- Short-term payment relief | Nedbank
- Take charge and restructure your finances | Nedbank
- Assisted-sales solutions for homes and vehicles | Nedbank
- Flexible payment plans for loans and credit | Nedbank
- Understanding how repo rate works | Nedbank
- We have payment solutions to get you back on track
- Consolidate all your debts into a simple loan | Nedbank
- Short-term payment relief | Nedbank
- Take charge and restructure your finances | Nedbank
- Assisted-sales solutions for homes and vehicles | Nedbank
- Flexible payment plans for loans and credit | Nedbank
- Understanding how repo rate works | Nedbank
- We have payment solutions to get you back on track
- Insure
- Life cover
- Funeral cover
- Short term insurance
- Credit Life
- Travel insurance
- Business cover
- Secure investments
- Explore Insure
- Life cover
- Get a call back
- Explore MyCover life
- Funeral cover
- Individual R10,000
- Individual R30,000
- Family Cover
- Build your own cover
- Get a call back
- Explore MyCover Funeral
- Individual R10,000
- Individual R30,000
- Family Cover
- Build your own cover
- Short term insurance
- Vehicle insurance
- Building insurance
- House contents insurance
- Valuables insurance
- Alternative energy insurance
- Legal expenses | Nedbank Insurance
- Get a call back
- Explore MyCover short term insurance
- Vehicle insurance
- Building insurance
- House contents insurance
- Valuables insurance
- Alternative energy insurance
- Legal expenses | Nedbank Insurance
- Credit Life
- Home loan credit life
- MFC Vehicle Finance Assurance
- Overdraft Assurance
- Balance Protection Plan
- Personal loan Assurance
- Get a call back
- Explore credit life
- Home loan credit life
- MFC Vehicle Finance Assurance
- Overdraft Assurance
- Balance Protection Plan
- Personal loan Assurance
- Travel insurance
- Business cover
- Secure investments
- Guaranteed Growth Income Plan
- Guaranteed Growth Plan
- Get a call back
- Explore MyCover Funeral
- Guaranteed Growth Income Plan
- Guaranteed Growth Plan
- Plan
- Financial planning
- Estate, wills & trust services
- Nedbank Private Wealth
- Speak to a financial adviser
- Explore Plan
- Financial planning
- Investment planning
- Insurance planning
- Give
- Retirement planning
- Investment planning
- Insurance planning
- Give
- Retirement planning
- Estate, wills & trust services
- Will drafting
- Ensure your estate is managed by an executor | Nedbank
- Trust services
- Financial accounting
- Tax services
- Leave the admin of your estate to us, and not to your loved ones | Nedbank
- Will drafting
- Ensure your estate is managed by an executor | Nedbank
- Trust services
- Financial accounting
- Tax services
- Leave the admin of your estate to us, and not to your loved ones | Nedbank
- Nedbank Private Wealth
- Speak to a financial adviser
- Learn
- Blog
- Explore Learn
- Blog
- A financial adviser can help you plan your future
- Everything you need to know about student loans
- A financial adviser can help you plan your future
- Everything you need to know about student loans
- Contact us
- Talk to us
- Find us
- Explore Contact us
- Talk to us
- Find us
Don’t have your Nedbank ID yet?
Nedbank ID single sign-on gives you full digital access to Nedbank’s banking and lifestyle products and services on the Money app or Online Banking.
Log in
Log in to Online Banking or another one of our secured services.
Understanding the bond cancellation process
Understanding the bond cancellation process
Staff writer
Posted 03/06/2024 Updated 26/06/2024 5 mins
Settling your home loan does not mean that your bond gets cancelled automatically.
From the moment you get approval for your home loan, you’ll be counting down the days until you can make that final payment. However, cancelling a bond on a property is not as easy as ending a streaming subscription – simply paying your final home loan instalment doesn’t automatically cancel your bond. There is still a cancellation process that you must follow.
The difference between settling your account and bond cancellation
- Settling your account
When you settle your home loan, you’re paying off the total amount owed according to your loan agreement with the bank. This includes the loan amount and interest. The bond remains in effect until further cancellation steps are taken. You can settle your home loan while keeping your account active – so that you keep access to the account benefits like NedRevolve, if applicable, or the ability to apply for further loans. However, you’ll continue to pay monthly fees and insurance premiums, and the bank will retain your home’s title deed.
- Bond cancellation
This process formally closes your home loan account and cancels the mortgage bond – so you will no longer have access to facilities like NedRevolve. An attorney will oversee the bond cancellation, which typically takes up to 2 months. Once the bond’s been cancelled, you will incur no further fees or costs, and you will receive the title deed to your home.
Take the following steps to cancel your bond
- Request bond cancellation through the Money app or Online Banking, or by calling 0800 555 111.
- Transfer any life assurance and homeowner’s insurance premium payments from your home loan instalment to your transactional account.
- An attorney will manage the cancellation process with the deeds office.
- You’ll need to pay any applicable bond cancellation fees directly to the cancellation attorney. This bond cancellation fee could be higher if additional loans were taken during the loan term.
- Once cancellation is complete, your title deed will be sent to you, and your home loan account will be closed.
- Do not cancel or reverse your debit order before your bond has been cancelled, as unpaid fees or insurance premiums will cause delays in the bond cancellation process and may affect your credit score.
Bond cancellation is a necessity when selling your property or finalising your bond. It ensures the official termination of the home loan and the transfer of your title deed. Your account can be closed only once all amounts due are paid. Any refunds due to you will be paid out after cancellation.
You must also continue your building and home contents insurance after you cancel your bond
If you cancel your bond because you’ve sold your house and not because you’ve paid off your home loan, you must also remember to contact your local municipality to close your utility accounts at your former address.
Bond cancellation fees and penalties
National Credit Act regulations stipulate that the lender can charge a cancellation fee if you cancel your bond before the end of the loan period. According to section 125 of the National Credit Act, if you want to cancel your bond, you need to give your bank at least 90 days’ notice. Otherwise, you might face a penalty charge equal to 90 days’ interest on the remaining loan amount.
Once you inform the bank, the penalty period kicks in, lasting for 90 days from the day that your notice is received. During this time, the penalty amount gradually decreases until the 90-day period ends.
However, if you let the bank know about your plans more than 90 days before you cancel the bond at the deeds office, you won’t face any early-termination charges. Give your lender enough notice, and you can avoid unnecessary fees.
Insure against worst-case scenarios
Securing the future of your home is crucial for your family’s well-being. A Home Loan Credit Life policy can cover up to R2.5 million of your home loan if you pass away or become disabled and unable to work. It also provides benefits like emergency household repairs, legal services, medical cover for trauma, assault and HIV support, and access to a personal health advisor.
Credit life insurance is a responsible choice, because if anything were to happen to you, it would help your loved ones pay off your home loan, cancel the bond and receive the title deeds to the home you’ve left them.
You must also continue your building and home contents insurance after you cancel your bond. You can contact Nedbank Insurance on 0860 111 333 for a quote or to transfer your insurance premium payments to your transactional account. This will give you peace of mind, knowing that your home is covered.