Access bonds provide the bond holder (borrower) the maximum flexibility in terms of financing their property purchase or releasing funds from an existing property.
Access Bonds – Highlights
Early Repayment – the bond holder has the ability to pay lump sums or larger monthly amounts into their bond account. This reduces the amount they owe and in turn the monthly payment to the lender.
Access to Funds – In the event that the bond holder needs to access some capital, providing the access bond has a sufficient available balance, access is instant – even via a simple internet transfer.
Cash Flow – Managing cash flow could not be easier. In periods where the bond holder has access to excess cash, this can be paid into the bond account. Conversely, where access to cash is required a withdrawal can be made up to the available balance. The amount owing on a bond can therefore be reduced and increased as circumstances dictate.
No Additional Arrangement Fees – arranging an access bond in comparison to a traditional type of bond generally costs the bond holder no more in arrangement fees.
Interest Rates – Whether an access bond or more traditional type of bond the rate will remain the same.
Credit Facility – With high interests rates and controls over what foreigners can borrow an access bond can also be viewed as a credit facility. Often access bonds are arranged even when the client requires no financing in order to complete a purchase.