If you want to buy a home and you find that the monthly repayments are too high when the home loan is payable over 20 years, you could ask for a 30-year term. At ThuthukaSA Home Loans, we will speak to the banks that offer 30 – year home loan terms for you. But you must also understand the following key points about 30-year home loans

  • The monthly repayments are lower and this would help you to pay for the home loan easily, especially in times like this when people are taking salary cuts
  • What matters most is the amount that you pay monthly e.g. you could take a 30-year home loan and pay more monthly and therefore end up paying off your home loan much sooner
  • Any additional payments that you make to your home loan could be available to you in the form of an access bond so if you need to borrow back the additional payments to pay school fees as an example, you would be able to do so. This would be much better than taking an expensive personal loan to finance your needs
  • Banks are likely to charge you a higher rate of interest  on a 30-year loan than on a 20 year loan. ThuthukaSA Home Loans submits your application for a home loan to all banks so you will have all the options put before you, to choose the one that best suits your needs
  • You will pay more interest on a 30-year bond than on a 20-year bond

As soon as your financial position improves e.g. if you get a promotion or a better job, it would be in your best interests to increase your monthly bond repayments so that you don’t end up paying too much interest

So if you have been reluctant to buy a home because you were worried about high monthly bond repayment, contact ThuthukaSA Home Loan at info@thuthuka-sa.co.za