Pre-agreement Statement and the Cancellation Of Mortgage Agreements

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To promote transparency the following must happen before entering into a credit agreement:

• Credit providers must:
• Deliver to the consumer a pre-agreement statement containing relevant terms and conditions of the credit - this will be presented at the attorney's offices

Cancellation Of Mortgage Agreements

Penalty fees have been prohibited by the Act, but cancellation fees are still allowed.

Calculation of the fee has remained similar to the current calculation:

• The charge/fee may not exceed the interest that would have been levied on the account for the period equaling a 3 months notice period, i.e.
  • If the client gives 3 months notice
    • The fee will be R30 (3-3)
  • If the client gives 2 months notice
    • The fee will be equal to 1 month's interest (3-2)