While there is no doubt that this is a cost efficient way to finance major purchases it may not be a good idea in the long-term. Regular withdrawals from your home loan account extends the duration of the bond repayments, which means that you're paying interest for longer.

However, smart use of the equity in your home can save or even make you money if you do it carefully. Getting the most leverage out of your home equity requires discipline, knowledge and a financial plan. Here are some tips to help you maximise your money saving and growing opportunities.

Tip 1: Increase your insurance excess
Raising the excess amount on motor and homeowners insurance policies can mean big savings on insurance premiums. If you increase the excess payable on a homeowner’s policy from R500 to R1000, you could cut your monthly premium by as much as 25 percent.

However, many people don't do this because they fear they may not have the necessary cash available in the event that they need to make a claim. With relatively low-interest cash readily available through a home equity line of credit you'll have the security and confidence you need to raise your deductibles and reap the savings!

Yes, you will have to pay interest if you need to access the money in the short-term, but over time, provided that you are a cautious driver and home owner, the savings on the premiums will offset the interest charges should you need to access the money. To benefit even more, take the 25 percent you save on the insurance premium and pay it into your home bond; this will give you the added benefit of reducing the amount of capital you owe.

Tip 2: Save on a car loan
If you are in the market to purchase a new car you could save as much as four percent on interest charges if you 'borrow' the money from the equity in your home.

You will almost always get a lower interest rate on a home loan than if you were to take out a car loan. This is because a car is a depreciating asset so the bank carries more risk if you default on the repayments.

If you got your home loan at 11 percent, but the bank offers a rate of 15 percent for your car loan, rather take the money from your bond. Let's look at an example:

A R150 000 car financed over four years at 15 percent will cost you R4123 per month. If you take the money from your access bond at 11 percent, it will cost you R3841 per month.