A little goes a long way, especially when it comes to your home loan. Paying a little more into your home loan every month can make a huge difference. Let’s look at how extra payments can help you get the most out of your home loan.
What it means for your home loan
An example of how you could benefit
(Please note: The example shown below is for illustration purposes only)
Paying extra each month | Paying in a lump sum | |
Loan | R1 000 000 | R1 000 000 |
Term | 20 years | 20 years |
Variable interest rate | 11.75% | 11.75% |
Estimated monthly repayment | R10 837.00 | R10 837.00 |
Extra payment | R200.00 monthly | R50 000.00 once off |
Estimated loan repayment period reduced by | 1 year | 3 years |
You could save approximately over the term of the loan | R129 569.00 | R377 194.00 |
The illustration above is based on the assumption that the monthly repayment is maintained for the term of the loan and is based on the total loan amount.
Accessing your Absa Flexi Reserve
It is important to note that depending on the remaining term and outstanding balance on your Home Loan Account, the full prepaid amounts may not be available to withdraw at a time in the future. Read more about Absa Flexi Reserve for more details.
Paying your Home Loan off sooner
As one of the bigger investments in your life, paying more into your Home Loan can mean owning your home sooner.
Read more related to this topic
Need more help or advice?
Let one of our property experts call you back.
Call us on:
0860 111 007
E-mail us at:
General account enquiries: home@absa.co.za
Home loan applications: propertyhub@absa.co.za
Battling to make home loan repayments: bondrs@absa.co.za
Homeowners comprehensive insurance: adminhoc@absa.co.za
Life insurance: polserv@absa.co.za