Step 1: Calculate your budget

When buying or building a property there can be lots of hidden expenses and costs. The list below should assist you with your initial budget:

1. Deposit

You might not get a 100% loan and the difference will have to come from somewhere. This is called a deposit. If you are a first time buyer you might qualify for a bond without a deposit - see lower down for more information. If you do pay a deposit then this will most likely be held in an account by the attorney - make sure that you get interest on this amount during that time.

Depending on your financial standing your deposit could be anywhere from 10% to 20%.

2. Bond registration costs

The Conveyancing attorney has to register the bond. There is a laid down scale from where this amount is calculated. Expect to pay anything from 0,5% to 1,8% of the value of the bond.

3. Transfer fees

The transfer fees are also paid to the conveyancing attorney and include the following:
- a transfer duty that needs to be paid to SARS (0% for properties under R500,000.00),
- Deeds office fee (between R200.00 and R500.00) and
- Administrative fees

4. Cancellation fee

If you have an existing bond that needs to be cancelled with the Deeds office then the attorney will also charge you a cancellation fee (approximately R1000.00). Your existing bond might also stipulate that your bank can charge you an early cancellation fee or penalty interest in certain cases. Make sure you know what the effect of this will be.

4. Occupational rent

The Offer to Purchase will stipulate the occupational rent. An occupational rent will be paid if you move into the property before it is registered on your name (i.e. it is still the property of the seller).

5. Other fees

Your bank might have a host of other fees that will go with a bond. Speak to a Home Loan Consultant to get all the amounts (e.g. valuation fee, processing fee, etc).

First time buyers

If you are a first time buyer and comply with certain requirements then your bank might just grant you a 100% (or more) bond. These bonds were specifically designed to help first time buyers who might not be able to pay all the associated costs or the deposit.

As of November 2006 these were the basic products from the different banks: