Question:
We have a bond of R607 000 and are able to pay an additional R2500 or R3000 each month. The bond was secured on a 20 year repayment period.

What is the best way of paying this extra amount? Should we arrange for a shortened payment term to, say, 10 years or arrange for an access loan?

Answer:
I am a big fan of access loans because they provide you with flexibility.

The important thing to remember with an access loan is that it works for you when you are paying extra money in, but against you if you see the equity you have built up as easy money.

If you shorten the loan period to 10 years and you run into difficulty you will be committed to that repayment. So get an access bond, but be disciplined in how you use it.