Even if you have cash in hand to buy a property, it is a good idea to register a mortgage bond as a financial safety net for the future. There is definite merit in taking out an access-type home loan that will give you quick access to finance in the event of unforeseen circumstances such as medical emergency etc. Homeowners who either don't use their loans at all or who use only part of the available funds in a "revolving" bond have instant and easy access to inexpensive financing. And funding a new car or other major purchase in this way is much cheaper than traditional HP financing, as there aren't finance charges & the interest rate is usually much lower.

Bondholders also have the option of paying off their loans much more quickly, thereby saving on interest repayments.  Another other incentive to take out a home loan has to do with age. Most banks are reluctant to grant loans to people after they turn 65, especially when the risk is high or their health is not good.

Investors should also think seriously about this option instead of paying cash in the light of the downward interest rate cycle and escalating property values. If an investor takes out an access type loan, he is effectively using the bank's money to buy and asset and can pay off the loan with the rental received. And he also has access to quick finance in the event of unbudgeted renovations without having to dig into his own pockets.

All the major banks offer access-type home loan options, which are available to a wide spectrum of homebuyers at the same cost as other home loans.