As South Africans continue to face financial pressure in their households due to the global pandemic and tough economic times, the need for additional funds has never been greater. To ease the financial pressure, home owners who have been using their home loan facility to save, may be able to access these additional funds to service their current financial needs.
Praven Subbramoney, FNB Private Bank Lending CEO says, “A home loan is more than a simple facility to help you pay off your property. When used correctly, it is an effective money management tool which can be utilised as a savings pocket to tap into when you need it the most.”
Through this facility, when one has paid more than their minimum monthly repayments or deposited lump sums into their facility pocket, they can be in a position to access these available funds when needed.
“In light of these unprecedented times where many people are facing salary cuts or even complete loss of income, this facility could provide an additional buffer which could assist with settling expenses such as their household obligations as well as to ease financial pressure over the next couple of months,” says Subbramoney.
In addition to homeowners using their access funds to stay up to date with their financial commitments, others have found ways to benefit from them in the long term. These include renovating their homes to increase the value of their property, reducing interest on debt, improving their education and even using the funds to start up a small business.
“There are many circumstances and underlying factors that may lead you to consider tapping into your access funds within your home loan or facility. While this facility provides great benefit to homeowners, the decision to tap into the funds should ultimately be well thought out and based on your current need, your broader financial plan and what you aim to achieve,” concludes Subbramoney.