Bond refinancing (also called bond switching) means applying to a new bank to take over your existing home loan, typically at a lower interest rate. The new bank settles your current bond and registers a new one — the property remains yours throughout.

On a R2 million bond over 15 remaining years, reducing your rate by 0.5% saves approximately R780 per month — roughly R140,000 in total interest. Use our bond calculator to model your specific savings, then deduct switching costs to calculate break-even months.

The National Credit Act limits prepayment penalties to 3 months' interest. Many banks waive this for competing bank switching, especially if you have been a client for several years. Always confirm the exact penalty amount before committing to refinance.

The refinancing process typically takes 6–12 weeks: new bank approval (5–10 days), conveyancing and documentation (3–6 weeks), deeds office registration (4–8 weeks). Timeline depends on attorney availability and deeds office processing times.

Refinancing is not worth it when: you have fewer than 5 years remaining (switching costs exceed savings); the rate difference is less than 0.25%; you plan to sell the property within 2 years; or early settlement penalties are high. Always calculate the break-even period first.