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Selling my home > Cancelling your home loan
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How do I cancel my home loan?
- You send us instructions to cancel your home loan
Our home loans department must receive a written request from you, your bank branch or attorney to cancel your home loan.
- Complete exact cancellation figures
We advise your attorney to attend to the cancellation of the outstanding capital amount and interest, plus any other costs that are required to settle the account.
- Amounts included in the cancellation figures
- The month-end balance before cancellation figures.
- Any homeowner's insurance premiums that would have been debited to your bond account in the
next three months. This ensures that the property is insured until the date of cancellation.
This usually takes three months, but the process may be held up for various reasons.
- Any life assurance premiums that would have been debited to your bond account in the next
three months are included, if applicable.
- Legal costs, interest, retention amounts and any early termination interest are all
included, where applicable.
- We instruct our attorney to handle the cancellation
You may nominate your own attorney to handle the transfer when a transferring attorney is involved. If the transferring attorney is on our panel, he can attend to the cancellation as well. We always nominate the cancellation attorney.
- The title deed and bond documents are sent to our attorney
The title deed is sent to you if the bond is paid up after cancellation. In the case of a sale, the buyer's bank receives the new title deed from the attorney.
- The attorney issues guarantees
A guarantee is a promise to pay the stipulated amount on cancellation. Guarantees are issued to ensure that there are funds available to cover the bond on the date of cancellation. Certain attorneys will issue guarantees on our behalf.
- We sign the consent for the bond to be cancelled
A consent to cancellation is a document signed by the manager of home loans or, where authorized, the cancellation attorney. This document agrees to the cancellation of the bond.
The consent to cancellation will not be signed until we have acceptable guarantees to cover the amount outstanding in our books.
The attorney prepares the relevant documents, and liaises with us until the bond is cancelled at the Deeds Office.
- Refunds are paid after cancellation
If we receive more than the amount needed to repay the loan on our books we will refund you.
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