You’ve just paid your last property instalment. But has your mortgage bond been cancelled with the bank?

Congratulations on making your final home loan payment! The day has finally come when you could consider yourself debt-free. However, you might be wondering about the next steps. You have an important decision to make – should you maintain the bond facility for potential future lending, or should you cancel the bond and obtain your Title Deed, thereby owning your property outright?

Should you decide to cancel your bond, firstly, contact your bank or home loan provider. It’s essential to understand that bond cancellation isn’t an automatic process; it’s a decision you must request. When reaching out, remember to have your bond account number within reach as it could expedite the process.

Make sure to ask several critical questions such as: How much will it cost to cancel the bond? Are there any penalties, especially if you’re settling your bond earlier than expected? What will be the Attorney’s fees, considering that your bank will appoint a cancellation attorney to oversee the process? And finally, how long will this process take? For your financial planning, you should budget approximately R 6000 for the Attorney’s fees.

Once the cancellation attorney is appointed, they will guide you through the necessary steps. This process will include submitting documents to the attorneys and signing paperwork for both the bank and the Deeds Office. All mortgage bonds must be cancelled at the relevant Government Deeds Offices, a process managed by the appointed cancellation attorney.

Post-cancellation of the Mortgage bond at the Deeds Office, the Title Deed is released to the attorneys who will then deliver it to you, the property owner. The Title Deed is a crucial document confirming ownership of the property, and will be essential for any future transactions relating to your property. Hence, ensure you keep your Title Deed in a safe and secure place, as only original documents are acceptable for transactions. Be aware that replacing a Title Deed can be a costly and time-consuming process.

By Gustav Meyer | Meyer Attorneys