Know your Bond and Transfer Costs

Whether looking to get onto the property ladder or buying that sprawling family home you’ve always longed for, purchasing property is one of the biggest undertakings and investments you will make in your lifetime.

In a nutshell, over and above the actual cost of the property, a buyer needs to set aside money for bond origination costs, transfer fees and transfer duties.

The bond repayment is made to the bank every month for the agreed-upon period, transfer duty is a tax based on the value of the property and is paid to SARS, while the transfer fees cover the costs for transferring the property into the buyer’s name (the conveyancing fees) and for registering a bond.

Below is an explanation on understanding your Bond and Transfer Costs.