All the fees to consider when buying a home

Buying a home is one of the biggest financial decisions you'll ever make. Whether you're purchasing your first property, switching your existing bond to another bank, or looking to refinance, understanding all the fees involved helps you plan ahead, avoid surprises, and make sure you're getting the best possible value from your home loan.

Many homeowners only focus on the purchase price and monthly repayments, but there are several once-off costs that can add up quickly. Here's a guide to the key fees you'll pay - and how Discovery Bank helps you save on the most important ones.

1. Transfer duty: This is a government tax payable to SARS when ownership of a property changes hands. It's based on the purchase price of the property and does not apply when you're switching a bond (because the ownership stays the same).
   Homes priced below R1.1 million are currently exempt from transfer duty in South Africa.
2. Transfer fees: These are legal fees paid to the transferring attorney to register the property in your name. These are separate from transfer duty and are based on the property's value. These fees only apply when you're buying a property, not when switching your home loan.
3. Bond registration fees: These fees are charged by the bond attorney for registering your home loan with the Deeds Office. They apply whether you're buying or switching your bond, and can range from R20,000 to R50,000 or more, depending on your loan amount.
   • With Discovery Bank Home Loans, you can save big on this cost, with 60% off your bond registration fee.
   • This is one of the most generous discounts in the South African market, helping you save thousands upfront.
4. Bond initiation fee: This is a once-off fee charged by the bank to process and approve your home-loan application. In South Africa, this fee is regulated and capped (currently R6,037 which includes the regulated fee plus VAT).
   • You can usually choose to pay this upfront or have it added to your bond.
5. Bond cancellation fee: If you're switching your home loan to another bank, your existing lender will charge a cancellation or settlement fee - generally between R3,000 and R5,000.
   They also typically require 90 days' written notice, so it's best to plan ahead. Cancellation before the 90 days may incur an early termination fee at your current bank.
6. Deeds Office fee and conveyancer disbursements: These are standard government and legal administrative costs for registering the bond and property title. They vary according to the bond amount but are usually a few thousand rands.

Read more: Understanding transfer and bond registration fees - and how you can save big

Why Discovery Bank is a great choice

Discovery Bank's shared-value approach means you can save both upfront and over the lifetime of your home loan:

Every property purchase or bond switch comes with a few unavoidable fees - but the right bank can make all the difference.

With Discovery Bank, you get industry-leading savings, transparent costs, and a smarter way to manage your money.

Switch and save with Discovery Bank.