What do I do if I fall behind on my house bond repayments?

Bond Repayments

Banks are very strict about being on time with your repayments. If you have money problems it is a good idea to see if you can change your budget around, or take in lodgers, so that you can still meet your repayments.

If you can’t do this, you must immediately go and discuss your problems with the bank where you have the bond. Don’t wait until you have missed a payment. They will not be so willing to help you then.

The bank will usually try and work out something to help you. For example, if you had to take a drop in salary, they might let you pay lower payments and pay over a longer time, say 25 years instead of 20. This means the house will cost you more in the long run, but it helps you out now.

If you miss a payment, the bank will send you a letter of demand. If they do not hear from you and you miss four months’ payments in a row, they will take the house away, have it sold and then use the money to cover what you owe them on the bond.