When registering a bond in South Africa, there are several costs involved at each step. These costs can vary based on the value of the property and the bond amount. Here’s a breakdown of the main costs:

1. Initiation Fees

Think about this as your first major cost. Most banks charge an initiation fee when you apply for a bond. This fee is typically between R5,000 and R6,000, but it can be higher depending on the bank and the loan size.

2. Attorney Fees

Remember when you thought getting a house was just about paying for the property? Nope, bond registration requires conveyancing attorneys, who handle the legal part of registering the bond. This fee is based on the bond amount and can range from R6,000 to R40,000 or more. The attorneys follow a sliding scale, so the higher the bond, the higher the fees.

3. Deeds Office Fees

This is a must for every bond registration. The Deeds Office charges a fee to register the bond, and it’s based on the bond amount. These fees range from around R1,300 to R9,000. Without paying this, your bond cannot be registered, so it’s a step you can’t skip.

4. Postage, Petties, and Sundry Fees

These small fees are often overlooked but they add up. You’ll pay for things like courier services, administrative costs, and other small items. This can cost between R1,000 and R2,000, depending on the law firm handling your bond.

5. Bond Registration Duty

While you’re busy with all these fees, don’t forget the bond registration duty. This is a government tax you pay, and it depends on the size of your bond. It’s not a huge amount, but it’s something you need to factor into your budget. For most home buyers, this duty falls between R500 and R1,000.

6. Property Valuation Fees

Before the bank approves your bond, they’ll send out a property valuer to check the property’s worth. The valuation fee ranges from R2,500 to R4,000, depending on the property and location. This cost can sometimes be included in your bond initiation fee.

7. Monthly Bond Repayment Costs

Finally, while not part of the initial registration process, it’s essential to note that once your bond is registered, you’ll start making monthly bond repayments. These repayments consist of interest and capital, and they depend on the interest rate agreed upon with your bank.

Remember, these costs can fluctuate, especially if the bond amount increases or the bank you’re dealing with has different fee structures. Always factor in these fees when budgeting for a property, as they add up and can be significant when combined with your purchase price.