Accessing money in a flexi bond | Fin24
 
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Accessing money in a flexi bond

Nov 14 2013 16:26
Fin24
A Fin24 user's father wants to access his flexi bond in order to buy another property. He writes:

My father has a flexi bond, R2.2m with only R100k outstanding. Can he use the R2.1m that's available in the bond to buy another property?

Can you simply access the funds and use that for the new property?

Steven Barker, head of home loans at Standard Bank responds.

Flexi bond is not a product of Standard Bank and therefore for us to provide an accurate response on the query would not be suitable.

We can, however, provide you with information on our product, called AccessBond Link.

AccessBond Link is a feature available on a home loan that allows customers to pay additional money into their home loan, which are amounts over and above the normal required instalment, allowing a customer to pay off their home loan sooner or to save up a reserve balance to access when needed.

The AccessBond Link facility is linked electronically to the customers Standard Bank transactional account, meaning that payments or withdrawals are done via internet banking or any other available electronic channel.

In response to your question coupled with the context of how our feature is designed to work, this means that the customer would only have access to the prepaid amount over and above the minimum instalment payable.

The question below requires more information such as remaining term and interest rate on the loan, to determine what amount is available.

However, what we can confirm is that the AccessBond Link facility is not a revolving loan facility that works on the original loan amount less balance owed.

Available funds would be the difference between the balance and the scheduled amortised balance over the loan which is considered prepaid funds.

We would recommend that you contact your bank to get a direct response on this query.

- Fin24

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property  |  money  |  money clinic
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