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Refinancing your home loan: Everything you need to know

Make funds available for renovations, solar panel installation and more by refinancing your bond. Here's what that entails.

Bond Refinancing

Article summary

  • You can refinance your bond to access equity, which is the difference between what you owe on a bond and the home’s actual value.
  • The new bond will be registered according to the home’s new value rather than its value when you initially registered the bond.
  • Equity can be used to pay off debts, pay for home renovations, install solar panels and more.
  • ooba Home Loans can guide you through the refinancing process.

More people are looking at ways to reduce their monthly expenses. Homeowners looking to release equity or consolidate debt have the advantage of being able to refinance their home loan, often at a lower rate, which saves money in the short term.

Get your questions on bond refinancing answered

ooba Home Loans can answer your questions about refinancing a home loan, and provide guidance when applying for a home loan in the first place so you can build up equity faster.

You apply for refinancing the same way you would apply for a home loan, basically like applying for a second bond.

The funds for the second bond are made available after bond registration.

You can use our Transfer Cost Calculator to determine what the bond registration will cost.

For example, for a further loan of R1 000 000, the costs would be as follows:
Bond registration costs (incl VAT) R 36 447
Bank initiation fee (incl VAT) R 6 038
Deeds office fees R 1 374
Post, petties, FICA other fees (incl VAT) R 2 200

Refinancing your home loan: What does it mean?

It means you’re applying for a new bond on your home based on its current value, rather than the value it had when you applied for your initial bond.

Why refinance your bond?

It enables you to access equity.

Equity is the difference between the amount you owe on your home loan and the actual value of your home.

For example, if you owe R1 000 000 on a home loan, but the home’s value has risen to R1 500 000, the extra R500 000 is equity.

You can access this equity if you refinance your bond.

How can you use your equity?

The potential uses are myriad. For example:

  • Pay for renovations that even further increase the value of your property.
  • Pay for solar panel installations. In this age of loadshedding, it’s a smart use of equity to install solar panels. This will add even further value to your property.
  • Pay off debt.
  • Pay tuition fees.

How to refinance your bond

You apply the same way you would for a bond; and, as with a bond, your credit record will be assessed.

In addition, the home will be revalued.

If the homeowner is accessing equity, the funds will be made available immediately after the home loan is approved.

The funds on the second bond will be payable after bond registration.

Seek the advice of a home loan comparison service

ooba Home Loans, South Africa’ largest home loan comparison service, offers free advice on the questions homeowners typically have about the financial implications and costs associated with refinancing their homes.

You can also employ ooba Home Loans when applying for a home loan. We submit your application to multiple banks and allow you to compare deals so you can choose the best one.

So apply for a home loan with ooba Home Loans and get the best deal of your bond, improving your equity in the long-term.

Get a free home loan comparison

Multiple quotes from the big banks to compare.


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Ooba home loans services are simply the best. My Consultant Bianca Dancer was so hands on and helpful from the get go. She guided me through the entire process and put me at ease being a first time buyer. I highly recommend their services.

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Jay Govender and Maleshini Reddy from OOBA provided outstanding assistance and guidance in securing our home loan. Response times were excellent and they were professional and friendly.

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Estelle Vorster was really helpful in securing the best deal for my home loan, she not only negotiated a lower interest rate she went as far as securing 50% discount on the transfer costs.

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