If you’re planning to sell your property and have a home loan (bond) with a bank, you could be hit with a three-month penalty interest fee if you don’t notify your bank in advance. This fee applies when you cancel your bond within the first three years of taking it out. However, you can avoid this unnecessary cost by following a simple but crucial step:
Give Your Bank 90 Days’ Written Notice
As soon as you decide to sell, formally notify your bank in writing about your intention to cancel your bond. This starts the 90-day notice period, ensuring you don’t have to pay penalty interest when the sale goes through.
Key Points to Keep in Mind:
✔ Timing Matters: If your property sells before the 90-day notice period ends, you may still be liable for part of the penalty interest. Consider giving notice as soon as you plan to list your property.
✔ No Obligation to Sell: Giving notice doesn’t mean you must sell—it simply protects you from extra costs if you do. If the sale takes longer, you may need to renew the notice.
✔ Check Your Bank’s Policy: Different banks have slightly different policies, so confirm the exact process with your lender.
By planning ahead and notifying your bank early, you can save thousands in unnecessary fees and maximize your profit from the sale!