Understanding the difference
Settling a bond does not mean that you've closed your Nedbank home lone account. Make sure you understand the difference between the two.
1. Settle your home loan
Settle your home loan but keep your account open. This allows you to keep your access to further lending solutions. You will keep paying the monthly service fee and insurance premium (if applicable) and Nedbank retains the title deed of your home.
2. Cancel your account
An attorney will be appointed to cancel the bond, which can take up to 3 months. A bond cancellation fee will apply and is payable to the cancellation attorney. Once the bond is cancelled at the Deeds Office, you will no longer have a home loan with us and you will receive the title deed of your home.
The cancellation process
1. Settle loan
Once you have settled your loan, use the Money app or Online Banking (features tab) or call us on 0800 555 111 to request cancellation. You’ll need to give a 90-day notice before closing your account.
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 Nedbank Insurance on 0860 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 dead
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.
Taking the first steps
Here's what you need to do to request settlement or bond cancellation.
You have paid up your home loan account
Call us on 0800 555 111 or log a request on the Money app or Online Banking (features tab) for Settlement or Bond cancellation.
If you are selling your home and have an outstanding balance.
If you are selling your home and need to close your home loan account:
- You’ll need to give a 90-day notice before closing your account.
- If this notice is not given, an early termination fee will be charged as prescribed by the National Credit Act.
- The termination fee to be paid will be equal to the interest you will have been charged for the remaining period, but no more than three months’ interest as stated on your home loan agreement.
- Your notice given 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 a 90-day notice again.
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 account open is useful if you want to access funds or apply for a further loan.
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.
