Bond Settlement Calculator
Calculate the total amount required to fully settle and cancel your South African home loan
Request a formal settlement quotation from your bank — valid for a specific date with the exact amount.
Three levels of detail — pick yours
Balance + rate + notice days → total settlement amount including all fees.
Full cost breakdown, settlement timing (Day 1–28 comparison), and settle-vs-continue analysis.
Daily interest accrual, tax implications for investment property, and reinvestment FV analysis.
How to Use This Calculator
Enter your outstanding bond balance (from your latest bank statement), your current interest rate, and the remaining term. The monthly payment is auto-calculated using the standard PMT formula — or you can override it manually if you pay a different amount.
Set the notice period (90 days is standard in South Africa), enter your attorney's cancellation fee estimate, and confirm the Deeds Office fee (currently R178). The calculator adds interest accrued during the notice period to give you the total settlement figure.
Note: this calculator gives you a reliable estimate. Always request a formal settlement quotation from your bank — it will be date-specific and legally binding for that date.
Bond Settlement Formula
South African banks calculate settlement amounts using daily simple interest during the notice period:
+ (Balance × Annual rate ÷ 365 × Notice days)
+ Bond cancellation attorney fees
+ Deeds Office cancellation fee (R178)
The daily interest calculation assumes interest accrues on your balance from the date of notice until the bond is cancelled.
Worked Example
Lindiwe has an outstanding bond balance of R800,000 at 10.25%. She wants to know the total amount to fully settle her bond and cancel it.
Daily interest rate: 10.25% ÷ 365 = 0.02808% per day
Interest during 90-day notice period: R800,000 × 0.02808% × 90 = R20,218
Cancellation attorney fees: R5,000
Deeds Office cancellation fee: R178
Total settlement amount: R825,396
Lindiwe must transfer R825,396 to the cancellation attorneys, who will disburse to the bank and Deeds Office.
The Bond Cancellation Process
- Give 90 days written notice to your bank that you intend to cancel the bond.
- Request a formal settlement quotation from your bank, valid for a specific cancellation date.
- Appoint a bond cancellation attorney (or accept your bank's nominated attorney).
- Transfer the settlement funds to the cancellation attorney's trust account.
- Attorney lodges cancellation at the Deeds Office — takes 7–14 working days to register.
- Bond is cancelled and you receive the title deed (if no other bonds remain).
Frequently Asked Questions
How is a bond settlement amount calculated in South Africa?
Your settlement amount equals your outstanding balance plus interest accrued during the 90-day notice period plus cancellation attorney fees and the Deeds Office cancellation fee of R178. Banks calculate daily interest on your balance during the notice period. The figure fluctuates daily, so always request a date-specific quotation from your bank.
What is the 90-day notice period for bond cancellation?
South African mortgage lenders are entitled to require up to 90 days written notice before cancelling a bond, as permitted by the National Credit Act. During this period, your interest continues to accrue on the outstanding balance. Some banks may waive or shorten this period — confirm with your lender. If you are selling and a buyer needs to register sooner, your bank may agree to a shorter notice period in exchange for extra interest.
Who are the bond cancellation attorneys?
Bond cancellation attorneys are conveyancing attorneys appointed to cancel the mortgage bond at the Deeds Office. Your bank typically has a panel of attorneys you can choose from, or you can appoint your own. They collect the settlement funds, pay the bank, and lodge the cancellation at the Deeds Office. Fees typically range from R3,500–R8,000 plus VAT, depending on the bond amount and attorney.
Can I settle my bond early without a penalty?
Yes. Under the National Credit Act, South African consumers can settle their home loan at any time without an early settlement penalty for bonds registered after June 2007. The 90-day notice requirement is not a penalty — it is a contractual notice period during which interest accrues normally. Some older pre-NCA bonds may have penalty clauses; check your original bond agreement.
What happens to my title deed when I settle my bond?
Once your bond is cancelled at the Deeds Office, the bank's mortgage bond is removed from your title deed. If you have an access bond, the facility is also closed. Your title deed is then held free and clear, or handed to you (or your attorneys). The cancellation is registered at the Deeds Office and reflects on the title deed within 7–14 working days after lodgement.