Loan Bank of South Africa journal
Add up home-buying costs beyond the deposit and the bond
Saving a deposit is only part of buying a home. Before a sale goes through, a buyer usually faces tax on the transfer and several professional fees. Readers in Braamfontein and across Gauteng can list these costs early, so that a bond approval is not mistaken for having enough money to complete the purchase.
By Loan Bank of South Africa editorial · · 2 min read
Transfer duty or VAT, not both
Transfer duty is a tax on the value of property acquired, and the person acquiring the property is liable for it. A sale is subject to either VAT or transfer duty, not both. If the seller is a registered VAT vendor and the property forms part of the seller's business, VAT applies. Otherwise transfer duty applies. Ask early which one your purchase falls under.
The SARS transfer duty table that took effect on 1 April 2025 was left unchanged from 1 April 2026. Under it, no duty is payable on a property value up to R1 210 000. Between R1 210 001 and R1 663 800, the duty is 3% of the value above R1 210 000. Higher bands use higher rates. Always confirm the current table on the SARS website, because rates can change in a national budget.
Work through one example
For a fictional purchase price of R1 400 000, the value above R1 210 000 is R190 000. Three percent of R190 000 is R5 700. That is the duty under the current table for that price, before any attorney fees or other costs. Change the price and the figure changes, so recalculate for the actual offer.
Transfer duty is usually paid through a conveyancer acting for the buyer, electronically through SARS eFiling. SARS says duty is payable within six months of the date of acquisition, and interest is charged if it is paid late.
Ask for written estimates of the rest
Transfer attorneys and bond attorneys charge fees, and there are other costs linked to registering the transfer and the bond. Ask for a written estimate that lists each item separately and says which ones are your responsibility. Ask when each amount must be paid, because some fall due before you move in.
Then add moving costs, any rates or levies that start on transfer, and a buffer for repairs. Compare the total with the cash you actually have. If the figures do not fit, it is better to know before signing an offer to purchase than after.
Home-buying cost checklist
Use this list alongside any bond quote.
- Confirm whether the sale attracts transfer duty or VAT.
- Calculate transfer duty from the current SARS table.
- Get written, itemised estimates for transfer and bond costs.
- Note when each amount must be paid.
- Compare the full total with cash you already have.