Why your home loan might be costing more

1. Is your bond debit order aligned with the due date?

Kevin was querying his home loan balance with his bank when he discovered something interesting. 

When he took out the loan five years previously, he was asked what day he wanted the debit order for his monthly payment to “go off”.  Like many others, he chose his payday, the 25th. The bank’s due date for payment is the first of the month. 

So from month one and every month since, he had technically been paying late during a “grace period” allowed by the bank, which is why no bank official ever brought the ongoing “late” payments to his attention. But it did add extra interest to his debt. 

The bank says better to pay a little more interest than risk the debit order bouncing a week after payday.

It’s definitely something to make an informed choice about.

2. Does your funeral policy offer premium breaks?

Lorraine wrote: “I took out a funeral policy in 2004, the cover being R10,000 upon death. I am now 69 and to date, I have paid R600 more than that R10 000. Is there anything I can do to stop the monthly premiums without losing the policy?"

South Africa’s Long-term Insurance Act allows insurers to offer premium waivers for policyholders over 65, allowing them to maintain full cover without further payment, but Lorraine’s may not. If not, she could explore switching to an insurer which offers flexible plans with premium breaks.

3. Looking for upmarket holiday accommodation? Don’t be fooled by an impressive website

Warning: Fraudsters have put up a fake Instagram page, claiming to be booking agents for upmarket holiday accommodation in the Cape. 

I spoke to a Cape Town woman who booked a holiday rental, a very posh house right on the beach in St Helena Bay, through “Exclusive Cape Town”, paying almost R67 000 after receiving what she thought was a professional-looking invoice. 

On arrival, her family found the property was locked, and the real manager confirmed that their booking didn’t exist. The Instagram page’s photos were stolen from legitimate sites, and Exclusive Cape Town’s “staff” images were stock photos with made-up names. My attempt to engage with them via email was unsuccessful.

Always verify accommodation listings directly with property managers, because holiday accommodation scams are rife.

4. A warning about Irish visas

Scores of South Africans have had their plans to visit Ireland trashed due to not receiving their passports and visas before their departure dates, despite applying up to three months in advance, as advised.

A report published by the Irish Times about the issue last month quoted Ireland’s Department of Justice, Home Affairs and Migration as saying that of the almost 5,000 short-stay visa applications which have been received from South African passport holders this year, 2,384 are still awaiting a decision.

The department said that South African passport holders should not book flights until they have received their visas. That forces people to make very expensive last-minute bookings.

5. Don’t buy a car unseen and unverified, from another province

Please, I beg you, do not buy a car by browsing online car listing sites, choosing a model that looks good, believing what the dealership, based in another province, tells you “accident free” and then finalising the deal without having the car professionally checked out. 

It’s never a good idea to buy before test-driving, either because even if the car is not defective, the drive experience may not suit you. 

Don’t make it easy for an unscrupulous dealer to offload a nightmare set of wheels on you.

Listen to more Consumer Hacks below:

Contact Wendy Knowler:

Get in touch with Wendy via her website or her Facebook page. Please note that Wendy is not able to personally respond to every email she receives. If she is able to take up your case, she will contact you directly. Here are other avenues for you to consider.