What fees can I expect to pay?
When applying for a house bond, homebuyers and investors typically plan for the repayment of the capital and make allowance for their bonds’ interest. Without the assistance of professional property finance consultants, loan applicants often don’t consider the upfront expenses that are associated with purchasing a home that if overlooked can cause copious undue stress. It’s important that you’re aware of these additional expenses so that you can save up the money or arrange a loan to cover these costs.
SA Home Loans’ property finance consultants offer amazing service and can guide you through all of the intricacies that accompany applying for a home bond in South Africa. Moreover, because our innovative bond products are flexible and uniquely tailored to our clients’ needs and financial situations, our property finance consultants are adept at providing information pertaining to your exact requirements.
This gives you the opportunity to focus on choosing the right property to make your home. Contact us on 0860 2 4 6 8 10 to apply for a bond or to receive information on what fees you can expect to pay when obtaining a house bond from us.
Typical home bond fees in South Africa
Transfer duties mentioned below are as at 1st March 2016.*
While some property bond fees are unique to certain types of home bond providers, transfer duty is universally required and payable to SARS if you are purchasing a home with a value greater than R750 000.
Transfer duties are a percentage of the cost of the home and are determined by the buyer’s legal status Legal entities, such as a company or trust, are required to pay 8% of the value of the property, while private buyers pay transfer duties on a sliding scale based on the value of the property:
- A building with a purchase price lower than R750 001 will incur zero transfer duties.
- A building with a purchase price from R750 001 to R1 250 000 will incur transfer duties of 3% on the value above R 750 000. (So, you don't pay Transfer Duty on the first R 750 000.)
- A building with a purchase price from R1 250 001 to R1 750 000 will incur transfer duties of 6% on the value above R1 250 000 plus a flat rate of R15 000.
- A building with a purchase price from R1 750 001 to R2 250 000 will incur transfer duties of 8% on the value above R1 750 000 plus a flat rate of R45 000.
- A building with a purchase price greater that R2 250 000 will incur transfer duties of 11% on the value above R2 250 000 plus a flat rate of R85 000.
Note that if the property is being purchased from a developer, no transfer duty is payable. However, VAT will be payable on the purchase price.
Conveyancing costs / Transfer fees
While the conveyancing attorney is appointed by the seller, the buyer is responsible for the costs of the ‘Transfer fee’. This fee is payable to the transferring attorney for transferring the property into your name. As with the above fees, they are determined in an upward sliding scale in direct proportion to the cost of the properties being purchased. The calculated fee is required to be paid before or simultaneously with registration/transfer of the property.
Note that the R750 000 exemption does not apply to ‘transfer fees’, only to transfer duty.*
Bond registration fee
For the service of registering your bond at the Deeds Office, you are likely to be charged bond registration fees or attorney costs. These fees can vary and it is recommended that you consult a property finance consultant from SA Home Loans for information on exactly what bond registration fees you are required to pay when purchasing your home.
Your bank’s valuation fees
Owing to the introduction of the National Credit Act, banks no longer charge their clients valuation fees. Instead, this fee is now incorporated into the bank’s initiation fees.
Your bank’s initiation fees
The National Credit Act now allows finance providers to charge their customers up to R5 985 (R5 250+VAT) initiation fees.
SA Home Loans: trusted South African house bond provider
SA Home Loans takes pride in providing flexible bonds and amazing service. Unlike banks, which typically serve customers using set requirements, SA Home Loans offers a personal approach to home finance. Our bond options include innovative bonds that are tailored to the unique needs and risk profiles of our clients.
Use our bond calculator to discover what size bond you can afford with SA Home Loans. Or contact us on 0860 2 4 6 8 10 for more information on the fees associated with purchasing a home.