What other costs are there associated with Mortgages?
Whenever you buy a house valued at over R900 000 fees are payable to the South African Revenue Service (SARS). It is calculated as a percentage of the purchase price and varies depending on the purchaser's legal status. The transfer duty is paid by the purchaser of the property prior to registration of transfer, or within six months after signing the agreement. There is a penalty fee for late payment of 10% per annum for each completed month after due date is levied.
Bond registration costs
The attorney registering your bond charges fees. They receive an instruction from the bank that has approved your home loan, draw up the paperwork, do FICA checks and lodge at the Deeds office. These attorneys should be in touch with you within a week of your mortgage being approved. They will ask you to come into their offices to sign the necessary documents. The fees are charged on a sliding scale, and your mortgage originator will be able to inform you how much these will be.
The conveyancing attorney is appointed by the seller, but paid for by the buyer. After the introduction of the National Credit Act the banks no longer charge a valuation fee but have included it in their increased ‘initiation fee’ . These fees are on a sliding scale that your Originator can help you with.
Bank’s initiation fees
Under the National Credit Act banks are allowed to charge up to R5,700 for their initiation fees. These vary from lender to lender but expect to pay at least R3,500 and no more than R5,700.