If you’ve recently received a home loan approval, you may have noticed something confusing:

The bond amount registered at the Deeds Office is often higher than the actual loan amount you’re borrowing.

For example:

• You borrow R1,000,000 from the bank
• But the bond is registered for R1,200,000

This often causes panic for buyers - “Am I paying back more than I borrowed?” The short answer is: No!

Here’s why banks do this:

The Principal Loan vs. the Registered Bond

• Principal Loan Amount: This is the actual amount you’re borrowing from the bank (e.g. R1,000,000). This is the amount your repayments are based on.
• Registered Bond Amount: This is the amount the bank registers at the Deeds Office - usually higher than your loan amount (e.g. R1,200,000).

The difference is called the “additional amount”, and it’s there to cover certain extra costs and interest, not to increase your loan.

Why the Bank Registers an Additional Amount

The additional amount is a safety cushion. It allows the bank to recover certain costs if something goes wrong (for example, if you default and the bank has to take legal action). It may also cover:

• Legal fees if the bond needs to be enforced;
• Unpaid interest if instalments are missed and arrears build up; and
• Other costs that could arise in protecting the bank’s security.

By law, the bank must register for more than the loan itself - otherwise, they wouldn’t be able to claim those extra amounts if needed.

What You Need to Know as a Buyer

• You do not pay the additional amount.
• Your monthly instalments are based only on the loan you actually take.
• The bigger registered figure is simply the bank’s legal protection, not extra debt for you.

Think of it like a credit card with a limit higher than what you’re using - you’re only responsible for what you actually borrow, not the maximum limit available.

Why It Matters

Understanding this upfront can save you a lot of unnecessary stress during the home loan process. Many buyers see the bigger bond amount on their documents and assume they’ve been tricked into borrowing more than they wanted. In reality, it’s standard practice across all South African banks, and it does not affect your repayments.

The Phoenix Bonds Promise

At Phoenix Bonds, we explain these technical details in plain language so you can feel confident at every step of the process. Buying a home is one of the biggest financial decisions you’ll make - and the last thing you need is confusion around the paperwork.

💡 Remember: You only pay back what you actually borrow, not the additional amount registered. The rest is just legal protection for the bank.