- When you purchase a property, you have to pay transfer fees to the conveyancing attorney who transfers the property from the seller’s name to yours.
- Transfer costs include the fees paid to the attorney, and the transfer duty paid to SARS (properties worth less than R1 100 000 are exempt from transfer duty).
- Instead of paying transfer costs upfront, you can apply for a 105% home loan, which includes transfer and bond registration costs in the monthly repayments.
Having your home loan application approved is an exciting event, but you need to be aware of the extra costs that go into a property purchase.
Extra costs include the transfer of property cost, and transfer duty, which we explain here.
Note: You can use our Transfer Cost Calculator to determine what the transfer of property process will cost you.
What you need to know about transfer costs
- What is the transfer of property process?
The process of transferring the property from the seller’s name to yours. This is conducted by a conveyancing attorney who is hired by the bank.
- Who pays for the transfer of property process?
Although the attorney is hired by the seller, the buyer pays the costs.
- What is the difference between transfer cost and transfer duty?
Transfer costs are paid to the conveyancing attorney; transfer duty is paid to SARS.
The former is the attorney’s fee (plus VAT) while the latter is a tax.
Properties worth less than R1 100 000 are exempt from transfer duty.
The transfer of property cost includes:
- The transfer costs: This is paid to the conveyancing attorney and varies depending on the value of the property. The higher the value of the property, the higher the transfer cost.
- Transfer duty: A tax on the transfer of property payable to SARS. This also varies according to the value of the property. The higher the value of the property (from R1 100 000 onward), the higher the transfer duty.
- Deeds office fees: The Deeds Office transfers the property to your name and registers the title deed in your name.
- Post, petties, FICA and other fees (incl VAT).
Calculate your transfer costs
You can use our Transfer Cost Calculator to determine what the transfer of property will cost you.
Our calculator will also tell you the bond registration cost, another additional expense that goes along with the purchase of property.
Can transfer costs be included in the home loan?
There is the option of a 105% home loan, in which the extra 5% covers additional costs like the transfer and bond registration costs, including them in your monthly repayments rather than requiring you to pay them upfront.
First-time buyers: Improve your chances of home loan approval
The 105% bond is a great opportunity for first-time home buyers. Improve your chances of acquiring one by improving your credit score, and employing the services of a home loan comparison service such as ooba Home Loans.
We submit your application to multiple banks. Some banks are more likely to approve your application than others, so applying to many banks improves your chances.
Some banks also offer better deals with lower interest rates. This will free up resources for additional costs such as the transfer and bond registration fees.
We also offer a range of tools that can make the homebuying process easier. These include calculators such as the aforementioned Transfer Cost Calculator.
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Ooba home loans services are simply the best. My Consultant Bianca Dancer was so hands on and helpful from the get go. She guided me through the entire process and put me at ease being a first time buyer. I highly recommend their services.
Jay Govender and Maleshini Reddy from OOBA provided outstanding assistance and guidance in securing our home loan. Response times were excellent and they were professional and friendly.
Estelle Vorster was really helpful in securing the best deal for my home loan, she not only negotiated a lower interest rate she went as far as securing 50% discount on the transfer costs.