SABWil Conveyancing: the First-time Buyer
Part 2 – Legal Costs and Applying for a Bond
Costs
In addition to the purchase price of the property, there are legal costs payable to the transferring attorneys and bond attorneys (if you are taking up a home loan to cover the purchase price or part thereof). Transfer duty, which is a tax payable to SARS, is also payable where the purchase price is more than R750,000.00. First-time buyers will usually be granted 100% bond, ie wouldn’t need to put down a deposit on the property, and under certain circumstances, some of the banks may even include legal costs in the approved loan amount.
Before deciding in which price-bracket you can afford to buy, you need to also take the legal costs into account, to avoid later disappointment and/or delays.
Applying for a bond
Most estate agents work closely with mortgage originators, who apply for finance on your behalf to a number of banks. Documentation which the banks/mortgage originators will need from you includes your ID, payslip, bank statements and an income statement. The mortgage originators are there to facilitate the home loan application and you won’t need to pay them a fee: they have commission agreements with the banks. It is usually beneficial to make use of the services which mortgage originators offer, as they know the banks’ requirements well and are often able to negotiate better interest rates on your behalf.
Authoress: Conveyancer – Marlene Heppes