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The transfer costs first-time home buyers can expect to pay

There are additional expenses to buying a home, such as transfer costs. Here’s what you need to know and what you can expect to pay.

Transfer Costs For First-Time Home Buyers

Article summary

  • 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, Deeds Office registration, 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 seller.
  • 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.

What you’ll pay on transfer costs

Transfer costs increase in proportion to the value of the property.

See the chart below for more detail:

Value of property Cost
Does Not Exceed R100 000 R47
Exceeds R100 000 but does not exceed

R200 000

R107
Exceeds R200 000 but does not exceed

R300 000

R682
Exceeds R300 000 but does not exceed R600 000 R850
Exceeds R600 000 but does not exceed

R800 000

R1 196
Exceeds R800 000 but does not exceed

R1 000 000

R1 374
Exceeds R1 000 000 but does not exceed

R2 000 000

R1 544
Exceeds R2 000 000 but does not exceed

R4 000 000

R2 140
Exceeds R4 000 000 but does not exceed

R6 000 000

R2 596
Exceeds R6 000 000 but does not exceed

R8 000 000

R3 092
Exceeds R8 000 000 but does not exceed

R10 000 000

R3 615
Exceeds R10 000 000 but does not exceed

R15 000 000

R4 303
Exceeds R15 000 000 but does not exceed

R20 000 000

R5 169
Exceeds R20 000 000 R6 885

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.

This is a solid option for first-time homebuyers who lack the funds for a deposit and additional expenses such as transfer costs and bond registration. Banks are more likely to offer 105% home loans in the current climate as competition between banks is strong.

First-time homebuyers: Improve your chances of home loan approval

Submitting your home loan application to multiple banks gives you the best chance of securing a bond with low repayments and interest rates, saving resources that can be put toward additional expenses such as transfer costs.

It also gives you a better chance of securing special packages aimed at first-time homebuyers, such as the 100% home loan (no deposit required) and 105% home loan.

Apply with ooba Home Loans and we will submit your application to multiple banks, allowing you to compare deals and choose the most favourable package.

Get a free home loan comparison.

Multiple quotes from the big banks to compare.

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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.

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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.

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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.

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