THE COSTS OF BUYING A HOME

COSTS OF BUYING A HOME In addition to the purchase price of a property, there are some other upfront, once-off costs which you’ll need to budget for: • Transfer Duty – this is a tax paid to SARS every time a property changes ownership. Properties with a value of less than R1 000 000 are exempt from transfer duty. Properties purchased from a developer are exempt from transfer duty, but will incur VAT on the purchase price. • Attorney transfer cost – payable to the attorney for transferring ownership into your name, calculated according to the purchase price. The attorneys will also charge you for smaller variable costs such as FICA fees, instruction fees and postage. • Bond registration cost – payable to the bond registration attorneys for registering your bond with the Deeds Office. • Initiation fee – levied by your bond provider as a once-off fee for processing your home loan application. At SA Home Loans, this is R6 037.50 and applicable to all property values. SA Home Loans offers a product called Transfer Assist which can provide up to R100 000 in cash for the purpose of settling transfer fees, transfer duties, paying up arrear rates, and any other expenses related to the transfer of the property prior to registration.

The table below provides approximate costs to give you an idea of what to expect. These amounts include VAT but may vary from attorney to attorney. PURCHASE PRICE

TRANSFER DUTY

ATTORNEY TRANSFER COST

BOND REGISTRATION COST

R500 000

R0

R17 079

R12 188

R700 000

R0

R21 185

R14 766

R900 000

R0

R25 150

R15 424

R1 000 000

R0

R27 059

R17 204

R1300 000

R9 000

R31 018

R19 636

R1 500 000

R18 750

R32 927

R20 781

R1 800 000

R36 750

R34 836

R21 927

R2 000 000

R50 250

R36 745

R22 189

R2 200 000

R66 250

R39 149

R24 713

R2 300 000

R74 250

R41 058

R25 858

R2 500 000

R91 000

R42 967

R27 003

R3 000 000

R146 000

R46 785

R29 294

R3 500 000

R201 000

R52 512

R32 730

*as at 1 July 2021. Excludes any costs associated with clearance certificates for sectional title properties.

www.sahomeloans.com T’s and C’s apply. Please refer to our website for further details. SA Home Loans is a Registered Credit Provider. Registration Number NCRCP1735.