Falling behind on your bond (home loan) payments can be a stressful and overwhelming experience. However, it’s crucial to remember that you’re not alone, and there are steps you can take to navigate this situation. Here’s a comprehensive guide outlining your options on what can you do if you cannot afford to pay your home loan in South Africa.

1. Seek Immediate Assistance

Don’t bury your head in the sand. Proactive communication is key. Contact your bank (home loan provider) as soon as possible. Explain your situation and express your willingness to find a solution. Remember, banks often prefer to work with borrowers to avoid repossession (taking possession of the property due to non-payment), which is a lengthy and costly process for both parties.

2. Explore Debt Relief Options

Your bank may offer various solutions to help you get back on track with your bond payments. These could include:

Payment holiday

This is a temporary arrangement allowing you to skip or reduce payments for a short period to catch up on arrears. This option is typically available if your loan is in good standing.

Bond term extension 

Extending your bond term stretches out your loan, reducing your monthly installments, making them more affordable. However, it also means you’ll pay more interest in the long run.

Debt consolidation

This option involves taking out a new loan to combine your existing bond and other debts, potentially offering a lower interest rate and a single, more manageable monthly payment.

3. Consider Debt Counselling

If you’re struggling with managing multiple debts, seeking professional help from a registered debt counselor can be beneficial. They can assess your financial situation, negotiate with your creditors on your behalf, and develop a sustainable debt repayment plan.

4. Explore Selling Your Property

As a last resort, selling your property might be necessary. This option allows you to settle your outstanding debt and potentially avoid repossession. Consider reaching out to a reputable real estate agent who specializes in distressed property sales to ensure a smooth and efficient process. Remember, selling during challenging times may result in a lower selling price compared to a more stable market.

Additional Resources:

• The National Credit Regulator (NCR)

Remember

• Early intervention is crucial. Don’t wait until you miss several payments before reaching out for help.
• Be honest and transparent. Open communication with your bank is essential in finding a solution that works for both parties.
• Seek professional guidance. Don’t hesitate to consult a registered debt counselor for personalised financial advice and support.
• Explore all options. Weigh the pros and cons of each solution carefully before making a decision.

Additional Information:

• You can also explore government resources like the National Housing Finance Corporation (NHFC) for assistance with home loan difficulties.
• It’s important to understand the legal implications of missing bond payments and potential repossession processes. Consulting with a legal professional or a debt counsellor can provide further guidance.

By taking proactive steps and seeking assistance, you can navigate this challenging situation and work towards a sustainable financial future.

Conclusion

While facing difficulties with your home loan can be overwhelming, remember, you are not alone. By taking proactive steps, seeking professional guidance tailored to your specific situation (e.g., debt counsellor, legal professional or financial advisor), and exploring the available options, you can navigate this challenging situation and work towards a secure financial future.

Additionally, staying informed about government programs and resources like the National Housing Finance Corporation (NHFC) can offer further support during this time. Don’t hesitate to reach out to your bank and explore the possibilities. Remember, early intervention is key.