Cancellation Fees

When your home loan is repaid in full, or you cancel the loan due to the sale of the property, and you wish to cancel the existing bond over the property, an attorney will be instructed to handle these proceedings. There will be a cancellation fee payable to the attorney for doing the cancellation (attorney fees) and also a cancellation fee due to the deeds office. (For an updated fee, refer to the Attorney.)

Absa does not have a penalty for terminating a home loan prior to ‘natural’ end date. However, it is stipulated in the home loan contract that the customer may not terminate the loan within the first 90 days of the loan period. Furthermore if a customer wishes to terminate the agreement after the initial 90-day period has lapsed, the customer has to give 90 days’ notice of his / her intent to cancel a home loan. If we do not receive prior 90 days’ notice (this falls outside the initial 90 days) we are entitled to charge 90 days of additional interest on the cancellation of the loan.