A twenty-year home loan term probably feels like you’ll never be the outright owner of your home.
For the first few years that you’re paying off your bond, you’re primarily paying the interest portion of your bond, and only a small fraction of your instalment pays off the “capital” (this is the value of the bond you took out). If you’re able to make lump sum deposits into your bond (for example, an annual bonus) or increase your instalment when you receive an increase or promotion, you’ll be paying off the interest faster and this reduces the length of time over which your home is bonded. For example, if you have a bond for R1 million at an interest rate of 10%, and you pay an extra R250 every month, you will reduce the total repayment time by 18 months.