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

Understanding what you'll pay upfront, and what's included in your bond, can help you plan better, budget smarter, and make sure you're getting the best possible value from your home loan.

In South Africa, transfer fees and bond registration fees are two of the biggest costs to consider when buying a home or switching your home loan.

A recent Discovery Bank survey found that many clients feel unclear about these costs, so you're not alone. This guide breaks them down to help you make more informed decisions and take advantage of available savings.

What are transfer and bond registration fees?

When you purchase a home, there are two key legal costs that must be settled before or at registration:

• Transfer fees: Paid to the transferring attorney for registering the property in your name. They're separate from transfer duty (a government tax) and are based on the property's value.
  • Transfer fees only apply when you're buying a property, not when you're simply switching your bond from another bank.
• Bond registration fees: Paid to a bond attorney for registering the home loan with the Deeds Office.
  • Bond registration fees apply whether you're buying or switching your bond to a new bank.

For example, on a R2 million bond, bond registration fees can easily reach R20,000 - R50,000.

Even when switching your home loan, standard transfer and bond registration costs apply. The good news? These costs can often be included in your bond, reducing upfront pressure. This benefit is only available on switch and refinance applications.

Find out more about transfer duty, bond initiation, and cancellation fees - and how to plan for them.

Save thousands when you switch to Discovery Bank

With Discovery Bank Home Loans, you can save significantly on your bond registration fee - and even more over time through lower interest rates:

• 60% off bond registration fees - one of the best discounts in the South African market.
• Up to 1% off your interest rate when you manage your money well through Vitality Money.

That means more money in your pocket now, and more savings every month over the lifetime of your bond.

Transfer and bond registration fees are a normal part of buying a home or switching a home loan, but they don't have to be a financial setback. With Discovery Bank, you can reduce or even eliminate these costs, while unlocking a lower interest rate and a seamless, digital home-loan experience.