An Access Facility is an offset account linked to your home loan, that allows you to access any surplus funds that have accumulated in your home loan account by you paying more than the minimum monthly instalment and/or paying a lump sum into your account.

In other words, if your home loan repayment as a monthly minimum instalment of, say, R20,000 per month – you can pay any amount you can over and above. If you paid R 30,000, then R20,000 of that would be attributed to your home loan repayment and the other R 10,000 would be attributed to your access facility. The access facility balance is always offset against your home loan balance to ensure that you pay minimal interest over the life of your loan.

Most banks will grant an access facility automatically upon registration of your bond, but it’s worth checking with your bank and then applying for it, if needed. Some banks may require you to have a transactional account with them, while others will arrange for the funds to be transferred between banks.

All of the major retail banks allow for an access facility, but each of the banks have a different name sand slightly different requirements:

The efficient way to make the most of an access facility is to do the following:

• Put yourself under pressure! When you have surplus funds, move them into your access facility rather than a savings account – why get 7% interest in savings when you could be offsetting 11% interest on your home loan?
• Set up a debit order that is slightly above the home loan repayment amount, so you continually accrue a small balance over time.
• In an emergency, these accumulated funds can be readily accessed as they were sitting in a savings account instead.

For more information about setting up an access facility, your Phoenix Bonds home loan consultant will discuss your options with you. We can complete a personalised prequalification with expert advice and support within 24 hours of your consult. In addition, we can apply to up to 10 banks on your behalf to ensure you get the best possible offer. The best part – it’s totally free for you!

To complete a prequalification or apply direct through us, GET STARTED HERE.