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Bond, Home Bond

A 70-year-old man first lost his wife and now his home.

In 2008 a couple bought property with a bond from Nedbank. The couple jointly took on the bond and both their names appear on the title deeds to their home. They paid regularly up till August 2021 when the wife sadly passed away. 

Even then the widowed husband continued to make regular payments of around R9000 monthly.

Then he received notification from the bank that he now had to pay the outstanding R582 000 on the bond or the bank would move to sell the property (or he would have to do so). Since the bond had been in both partners’ names, his wife’s death triggered requirements for him to settle up the balance.

‘his wife’s death triggered requirements for him to settle up the balance’

Alternatively, the bank said he could apply for a new bond for the R582 000 but this time in just his own name.

Relieved, this is what he did.

The bank promptly turned him down based on his age of 72. They now insist he settles the balance and or sell the property to do so. As you can imagine, the man was not only still distressed over the loss of his wife but now faces having to sell the home due to technical issues surrounding bonds. 

The story recently made a splash in the media and draws attention to the fact that those who buy a house should beware of having an incorrect view of their actual debt situation. 

This case just reminds bond holders that they do not own the asset. They are simply paying off a really big loan over time and the asset belongs to the bank. They can and will take the asset back and sell it on auction if payments are not made on time or according to the contract.

DID YOU KNOW: Traditionally, home owners pay around 3 times the value of the initial bond amount in repayments (with fees and interest) over the decades.


Bond holders should also be aware of credit life insurance cover which can assist in covering the balance owed on a loan in the event of death (or retrenchment or permanent disability).