Change the instalment date to the day you receive your salary. As interest on home loans is charged daily, the earlier you reduce your balance, the less interest you end up paying in total.

This movement is very small on a monthly basis, but compound interest makes this small change valuable throughout the entire term of the loan and is a great way to save on the total interest paid Paying as little as a 10% additional payment per month into your bond could save approximately four years of repayments and R250 400 in interest on a R1 million loan over the life of the loan.

These calculations have been based on the current level of interest rates. The additional repayment is immediately set off against the capital value of the loan, thereby reducing interest paid and saving you in the long term.