1. What is the Bond Repayment Calculator?

The Bond Repayment Calculator FNB calculates your monthly home loan payments using First National Bank's standard bond calculation formula. It helps you estimate your mortgage affordability and plan your budget effectively.

2. How Does the Calculator Work?

The calculator uses the standard bond repayment formula:

Where:

• \( M \) — Monthly payment (ZAR)
• \( P \) — Principal loan amount (ZAR)
• \( r \) — Monthly interest rate (annual rate ÷ 12 ÷ 100)
• \( n \) — Loan term in months (years × 12)

Explanation: This formula calculates the fixed monthly payment required to fully repay a bond over the specified term, including both principal and interest components.

3. Importance of Bond Repayment Calculation

Details: Accurate bond repayment calculation is essential for financial planning, determining affordability, comparing loan options, and ensuring you can comfortably manage your mortgage payments.

4. Using the Calculator

Tips: Enter the principal amount in ZAR, annual interest rate as a percentage, and loan term in years. Ensure all values are positive and realistic for accurate results.

5. Frequently Asked Questions (FAQ)

Q1: What is included in the monthly payment?
A: The calculated payment includes principal and interest. Additional costs like insurance, rates, and taxes are not included.

Q2: How does interest rate affect my payment?
A: Higher interest rates significantly increase monthly payments. A 1% rate increase can raise payments by 5-10% depending on the loan term.

Q3: What is the maximum bond term available?
A: Most banks offer bond terms up to 20-30 years, with 20 years being the most common maximum term.

Q4: Can I pay extra towards my bond?
A: Yes, most bonds allow additional payments which can reduce the loan term and total interest paid.

Q5: What factors affect bond approval?
A: Credit score, income, debt-to-income ratio, property value, and deposit amount are key factors considered by banks.