At Absa, we aim to make buying your home as easy as possible. It’s a big purchase and too many buyers think they only need enough money to pay their deposit and monthly home loan repayments. However, there are extra fees that must be paid to transfer the property into your name, to register your bond (home loan) and more.

Costs you need to consider

To make it easier for you to plan your budget we have put together a list of  the costs you will need to pay in order to own your new home.


Bond registration fees and transfer fees:

  • These fees are charged for ensuring that the bank’s mortgage bond is registered, and transfer of ownership takes place. These services are performed by qualified Conveyancers and is done by the bond registration attorney and the transferring attorney (can be the same or different Attorneys).

Transfer duty:

  • Transfer duty is applicable when acquiring properties that are bought or are valued for more than R1 000 000.
  •  It is a tax that is payable to SARS and is based on the purchase price or value of the property.

Initiation fees

  • A one- time fee of R6037.50 is the fee to initiate the home loan and to open your home loan account.
  • This fee can be added to your home loan account once your bond is registered or can be paid by you as a once off payment.

Deposit (optional)

  • Paying deposit is recommended as it means you will only need to finance the balance of the purchase price. It can save you money as you will not need to finance the full purchase price. If the bank does not grant you the full loan to cover the purchase price, a deposit is payable to the Transfer Attorney, in terms of the Deed of Sale.
  • Your deposit is the difference between the purchase price and the loan amount of the property. It will not cover transfer duty, bond registration costs, transfer costs and initiation fees – these are costs you will still need to pay.

Insurance costs

  • Homeowners insurance – if you are buying a free-standing property you need this type of insurance before your home loan is registered.
  • Life insurance will cover your home loan in the event of death, disability (and sometimes retrenchment) – this is compulsory if you have a MyHome Home Loan and is required before registration of your bond

Additional costs

  • You will be charged a monthly administration fee to maintain your account.

Calculate your costs

Want to get a better idea of what your costs will be? Use our handy costs calculator

or complete our  My Homeowner Journey  and see how much your dream home will cost.


Understanding Home loans  Apply for a home loan



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Need more help or advice?

Let one of our property experts call you back.

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