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Learn More About The Access Bond

By Scott McKenzie

People are choosing an access bond as one method to lower a home loan balance. The homeowner deposits his or her paycheck into the bond account. Because of the calculations involved, it lowers the daily increase of the loan interest. It actually reduces the time it takes to pay off the loan. But the homeowner still has complete access to the money in the account.

This is one way people are looking at in trying to save money on their house loan. The first way to save of course, is to get the best price on the property in the first place. Once the deal is done though, a home owner can still sign up for ways to save on the loan, or to reduce the time it takes to pay if off.

The access bond has its advantages and disadvantages. It can help reduce the daily interest rate of the mortgage loan, which is the long term advantage because it will reduce the overall amount the borrower has to pay for the loan. And those who might need money for an emergency, or for any purpose for that matter, can access the money in the account.

Some property owners will use the account for an equity loan. But of course, this will increase the monthly payment amount. But there are those who might need money only for the short term, so this is certainly one option to consider. In addition, the equity loan will usually be charged a lower interest rate than the typical bank loan.

But homeowners have to realize that money taken from the account, will negatively affect the equity on the property. Every withdrawal is like withdrawing from the equity that has been built up in the house. Most people understand this, but if a person needs money, he might not be interested in the future sale of the land.

But when they sell the property, they will certainly see the results of the money withdrawals. The account has to be paid off when the house is sold. This will certainly cut into the equity amount, and in some cases an owner will only break even because he spent years withdrawing money from the account.

This account can be started when the mortgage is approved. It can also be opened when the mortgage is already in place. But the person signing up for it must see it as a way to manage and reduce the mortgage payments and not as a way to regularly take out money.

Have you heard of the latest and greatest access bond? Get the inside scoop on bonds and transfer duty instantly in our complete bond guide.

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Article Citation
MLA Style Citation:
McKenzie, Scott "Learn More About The Access Bond." Learn More About The Access Bond. 26 Aug. 2010. 23 Jan 2015 <>.

APA Style Citation:
McKenzie, S (2010, August 26). Learn More About The Access Bond. Retrieved January 23, 2015, from

Chicago Style Citation:
McKenzie, Scott "Learn More About The Access Bond"

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