- Bond registration fees are paid to the bond attorney, who is appointed by the bank to register the bond in the homebuyer’s name.
- Bond registration fees are dependent on the size of the loan. The higher the loan, the higher the fees.
- It’s advised to set aside 10% of the property purchase price to cover additional expenses such as bond registration.
A home is one of the most important and worthwhile investments you’ll make, so it pays to be prepared. In addition to the value of the property itself, you need to bear in mind the legal and administrative costs that go along with a home purchase.
Bond registration costs: What do you pay, and to whom?
Bond registration costs are one of the additional expenses that come with buying a home, aside from the cost of the home loan.
The bond registration process:
- Your home loan gets approved by the bank.
- The bank hires a cancellation attorney to cancel the original bond on the property.
- The seller of the home appoints a conveyancing attorney to transfer ownership of the property to you.
- The bank appoints a bond registration attorney to register a new bond in your name.
- The homebuyer pays registration fees to the bond attorney.
- The transfer of property and bond registration process takes around three months.
How much will the buyer pay on bond registration costs?
- The bond registration fee increases with the size of the loan.
- You can use our Transfer Cost Calculator to determine what you, as a homebuyer, will pay for bond registration.
- As a general rule, the home buyer should set aside around 10% of the property purchase price to cover additional charges, including the bond registration costs.
Bond registration costs are not the only costs you pay when buying a home. Additional costs include:
- The deposit.
- Conveyancing fees for the transfer of property.
- Transfer duty (a tax on the transfer of property, only applicable on properties worth more than R1 000 000).
- Deeds Office Registry Fee.
- Moving costs.
- Occupational Interest.
- Municipal rates and taxes.
- Repairs and maintenance.
- Home insurance.
Help with the homebuying process
An estate agent can help walk you through the homebuying process. Furthermore, a home loan comparison service such as ooba Home Loans can save you money in the long-term by applying for the home loan on your behalf. We submit your application to multiple banks, allowing you to compare deals and choose the one with the lowest interest rates.
This frees up your budget for additional costs sauch as bond registration.
We also offer a range of tools that can make the home buying process easier. Start with our Bond Calculator, then use our Bond Indicator to determine what you can afford. Finally, when you’re ready, you can apply for a home loan.
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