Absa | Thinking of cancelling your bond

When the time comes to cancel your bond – either because you have paid up your home loan or you are planning on selling your home – there are additional costs and processes to consider. Read on to find out how to go about cancelling your bond.

Still paying your home loan
Paid up home loan

You are still paying off your home loan

If you’re planning on selling your home but your home loan is not yet paid up you can cancel your bond by giving us a 90-day notice or you can cancel your bond without notice. Let’s take a look at the difference between your two choices.

Cancelling your bond with a 90-day notice

What you need to do

Submit a 90-day notice to cancel your bond via your Absa Banking App or Absa Online Banking or call 0860 111 007
We’ll calculate the cancellation figures and appoint a cancellation attorney
You will sign the documents with the attorney and pay the cancellation fees
You will need to settle your balance or secure payment by way of a guarantee
The cancellation attorney will attend to the bond cancellation at the Deeds Office and arrange for your title deeds to be delivered
We will refund any excess funds into your nominated account or to the cancellation attorney, if you have not nominated an account

Absa Flexi Reserve

Your Flexi Reserve facility will be suspended as soon as the cancellation attorney confirms receipt of the guarantees for the cancellation figures.
If you want to withdraw from your Flexi Reserve after the guarantees have been received, you will have to ask your attorney to stop the cancellation process, withdraw your funds from your Flexi Reserve and then restart the cancellation process.
If you withdraw from your Flexi Reserve, your outstanding balance will increase, and the cancellation figures will be recalculated.

Early Termination Charges

If you gave notice and your bond is cancelled within 90 days from the notice, you will be charged up to a maximum of 90 days interest calculated on your outstanding balance, depending on the number of days remaining.

Cancellation Attorney fees

The cancellation attorney will charge a fee for the cancellation that will take place in the deeds office and for administering the cancellation.
The fee is paid directly to the cancellation attorney and is for your account. It may vary depending on the number of bonds you hold over the property that needs to be cancelled.

Homeowners Comprehensive Insurance (HOC)

Please ensure that your property remains insured during the cancellation process to make sure your property is covered for damages and/or losses. Once your bond is cancelled, you must arrange to pay your insurance premiums through your transactional account if your insurance premium is paid from your Absa Home Loan account.

Life Insurance

Ensure your life insurance remains in place until your bond is cancelled.

If Absa Life Insurance or Absa Homeowner’s Insurance premiums are paid from your Home Loan account, please contact Absa Life or Absa Insurance Company to make payment arrangements for your premiums to be paid from your transactional account.

Absa Life: 0860 227 253
Absa Insurance Company: 0860 100 876

Cancelling your bond without notice

What you need to do

Submit notice to cancel your bond via your Absa Banking App or Absa Online Banking or Call 0860 111 007
We’ll calculate the cancellation figures and appoint a cancellation attorney
You will sign the documents with the attorney and pay the cancellation fees
You will need to settle your balance or secure a settlement payment by way of a guarantee
The cancellation attorney will attend to the bond cancellation at the Deeds Office and arrange for your title deeds to be delivered
We will refund any excess funds into your nominated account or to the cancellation attorney, if you have not nominated an account

Cancellation and early termination fees apply to an immediate notice.

Absa Flexi Reserve

Your Flexi Reserve facility will be suspended as soon as your attorney receives guarantees for the settlement figures.
If you want to withdraw from your Flexi Reserve after the guarantees have been received, you will have to ask your attorney to stop the cancellation process, withdraw your funds from your Flexi Reserve and then restart the cancellation process.
If you withdraw from your Flexi Reserve, your outstanding balance will increase, and the cancellation figures will be recalculated.

Early Termination Charges

If you did not provide notice to cancel and requested immediate cancellation of your bond early termination charges will be added to your cancellation figures. These will be equivalent to 90 days interest calculated on your outstanding balance.

Attorney fees

The attorney will charge a fee for the cancellation for administering the cancellation.
The fee is paid directly to the attorney and varies depending on the number of bonds over the property to be cancelled.

Homeowners Comprehensive Insurance (HOC)

Your property must remain insured to cover against damages and/or losses during the cancellation process. Once your bond is cancelled, you must arrange to pay your insurance premiums through your transactional account if your insurance premium is paid from your Absa Home Loan account.

Life Insurance

Ensure your life insurance remains in place until your bond is cancelled.

Absa Life: 0860 227 253
Absa Insurance Company: 0860 100 876

Your home loan is paid up

Once your home loan is paid in full you will need to cancel your bond to obtain possession of your property’s title deed.

Steps to cancelling your bond

Initiating the cancellation:

A cancellation attorney will cancel the bond on your property at the deeds office and you will have to pay a cancellation fee to the cancellation attorney. There are no bank fees for a paid- up bond.
You can call 0860 111 007 to initiate the request for cancellation of your bond.
You may also go to your nearest branch and ask an agent to assist you to start the cancellation process.

Home Owners Comprehensive Insurance (HOC):

If your HOC is debited from your home loan account, once your bond is cancelled you must make arrangements to have the debit order moved to your transactional account otherwise your cover might lapse. Call 086 222 7272 to make the necessary arrangements.

After your bond has been cancelled:

Upon cancellation of the bond, your cancellation attorneys will pay Absa according to the cancellation figures that were issued.
This amount will be credited to your home loan account and any extra monies will be refunded to you in terms of the refund instruction completed at the attorney.
Your home loan account will then be closed

Selling your property and buying another through Absa?

If you finance another property with us, you qualify for our Loyalty Home Loan benefits. Find out more about what our Loyalty offering has to offer you.