Before we get into access bonds specifically, it’s important to first understand what a bond is—especially in the context of property and home ownership.
In South Africa, a bond is another term for a home loan. When you buy a property and don’t have the full purchase price upfront (as most people don’t), you apply to a bank or financial institution for a bond. This bond covers a large portion—typically up to 90% or more—of the purchase price. You, the borrower, then repay the bank over a fixed term (often 20 or 30 years) with monthly instalments that include interest.
A bond is a secured loan, meaning it is tied to a tangible asset—in this case, the property. If you default on your repayments, the bank has the legal right to repossess and sell your property to recover the outstanding debt. This makes it less risky for lenders than unsecured credit, and often results in lower interest rates compared to other lines of credit like credit cards or personal loans.
Unlike personal loans or overdrafts, which are often unsecured and have shorter repayment periods and higher interest rates, a bond is designed specifically for long-term property finance. It is structured, regulated, and tends to come with more favourable repayment terms due to the lower risk to the lender.
“The Cheapest Money You Can Get”
This is a phrase I’ve heard countless times from more experienced property investors than myself—but I’ll be honest, I never fully grasped what it meant until recently. It was one of those expressions that sounded smart, made sense in passing, but hadn’t really clicked for me in a practical way. That changed when I started comparing different forms of credit more closely—particularly when I looked at the interest rates attached to each.
As mentioned earlier, a bond (or home loan) is a secured loan, meaning it’s backed by the value of a tangible asset—in this case, the property itself. Because the bank has something of value to claim in the event that you default, the risk to the lender is much lower. That lower risk is what allows banks to offer home loans at significantly lower interest rates compared to unsecured forms of credit, like personal loans, credit cards, or overdrafts.
At the time of writing this, the prime lending rate in South Africa is 11%. The prime rate is essentially the benchmark interest rate that commercial banks use when lending to their most creditworthy customers. It is influenced directly by the repo rate, which is set by the South African Reserve Bank. When the repo rate changes (as a response to inflation or other macroeconomic conditions), so too does the prime rate. In most cases, your bond interest rate is set at or just above the prime rate, making it the most affordable form of borrowing available to individuals.
By contrast, interest rates on credit cards can easily reach 18.50%, and personal loans can climb as high as 28.25%, depending on your credit profile and the lender’s risk appetite. These forms of credit are unsecured—there’s no collateral behind them—so the bank charges a premium to compensate for that increased risk.
This is where the phrase “the cheapest money you can get” starts to make sense. The money you’re borrowing through your bond is being offered at a rate significantly lower than any other form of credit. And when you understand the compounding impact of interest over time, that difference isn’t minor—it can mean tens or even hundreds of thousands of rands saved in the long run.
That’s why more seasoned investors always stress the power of an access bond. It gives you access to the cheapest money you’ll ever be offered—money you’ve already paid into the bond and can now tap into, at interest rates far lower than any credit card or loan could offer.
What Exactly is an Access Bond?
Now that we understand how a bond works and why it’s considered the “cheapest money you can get,” let’s look at how an access bond takes things a step further—and why it’s such a powerful financial tool for homeowners and property investors.
An access bond is a type of home loan that allows you to access any extra money you’ve paid into your bond account, over and above your required monthly repayments. In other words, if your minimum bond repayment is R10,000 per month and you consistently pay R12,000, that extra R2,000 doesn’t just disappear—it sits in your bond account, reducing your interest and, more importantly, can be withdrawn by you at any time, almost like a savings account.
Even better, you’re not limited to regular monthly overpayments. If you receive a bonus, sell an asset, or just want to park some funds temporarily, you can deposit a lump sum into your bond—and access it later when needed. The key benefit is that this money is accessible at your bond’s interest rate, not at the much higher interest rates attached to credit cards or personal loans. That’s what makes it so attractive.
Think of an access bond as a revolving line of credit built into your home loan, except with far better terms. You’ve already been approved for the bond. You’re simply reusing your own money, which you’ve already paid into the property. It’s flexible, it’s affordable, and it allows you to manage your liquidity without reaching for more expensive credit options.
In essence, an access bond gives you the best of both worlds: you’re reducing your long-term interest by paying extra into your bond, but you’re also keeping the option open to tap into those funds if and when you need them. For anyone serious about using property as a long-term wealth-building tool, it’s a feature that’s hard to ignore.
