Lake Properties Lake Properties
Quick snapshot: the top things to sort first
- Check your credit & gather documents.
- Get pre-qualified / get your bond in principle.
- Budget for deposit and transfer/bond/attorney costs.
- Hire a good agent and schedule inspections.
- Read the Offer to Purchase carefully — include sensible conditions.
- Submit bond paperwork fast after OTP is signed; transfers can take weeks.
1) Money first — know what you can afford (the honest truth)
Before you fall in love with a house, get math-serious:
What lenders look at
- Income vs debt (your debt-to-income ratio).
- Salary slips, bank statements, ID, proof of residence and the signed Offer to Purchase (OTP). These are the essential documents banks ask for when you apply.
Deposit
- While some 100% home loans exist, putting down 10–20% is still the safest route — lowers your repayments and improves bank appetite.
Hidden and one-off costs to budget (not negotiable)
- Transfer duty (tax to SARS on certain purchase prices).
- Conveyancer (transfer) fees and bond registration fees (attorney costs).
- Valuation fee (bank valuation), compliance certificates (electrical, gas if needed), FICA admin, moving costs, initial insurance and possible levies or rates arrears. (Expect transfer/bond admin totals to run into tens of thousands depending on price.)
2) Grants & government help — are you eligible?
If your household income is between roughly R3,501 and R22,000 per month, you may qualify for FLISP (the Finance-Linked Individual Subsidy Programme) or similar first-home subsidies — these help bridge the deposit/gap for qualifying first-time buyers. Check the official FLISP pages and provincial housing offices for the application process and documentation required.
3) Pre-qualification and bond approval — the timing and why it matters
- Pre-qualify (sometimes called pre-approval or approval-in-principle): shows sellers you’re serious and gives you a realistic price range.
- How long for approval? If your paperwork is complete, many bond originators/banks can give an outcome in principle quickly (48 hours to a few days). Full approval — including valuation and underwriting — usually takes about 7–14 days in typical cases, though occasional delays happen.
Tip: Use a reputable bond originator to compare offers across banks — it can save you thousands in interest and often speeds up the application.
4) Transfer duty & example calculations (SARS rules from April 2025)
SARS updated the transfer-duty threshold effective 1 April 2025. There is no transfer duty payable on properties up to the threshold (check the exact threshold for the tax year when you buy). For values above it, rates are progressive — SARS publishes the bands and formulas. Always confirm the current threshold on SARS before budgeting.
Example math — do it step-by-step (useful so you can verify):
- If purchase price = R1,500,000 and the zero-duty threshold is R1,210,000:
- Subtract threshold: 1,500,000 − 1,210,000 = 290,000.
- Duty on that slice = 3% × 290,000 = 8,700.
So transfer duty = R8,700. (Illustrative — use SARS calculator for exact.)
Another quick example: R2,500,000 falls in a higher bracket; SARS rules are progressive (you combine fixed amount + percentage on the remainder). For complex amounts, use an online transfer duty calculator or your conveyancer.
5) Typical conveyancing & bond fees — what to expect
- Bond attorney fees / bond registration fees: set by scale and vary by bond size and complexity — rough published guides show step increments (these are legal fees to register the bank’s bond on the Title Deed). Plan for several thousands to tens of thousands depending on loan size.
- Transfer (conveyancing) costs: the conveyancer prepares transfer documents, pays deeds office fees, arranges rates clearance certificates, and handles SARS payment where applicable. These too are scale-based and can be estimated with transfer calculators provided by conveyancers/attorneys.
6) Step-by-step timeline — from “I like it” to “keys please”
- Find a property and sign an Offer to Purchase (OTP) with sensible conditions (finance clause, inspection clause, clear date of occupation).
- Apply for bond immediately using the signed OTP. Banks will request documents and order a valuation. Expect an in-principle answer quickly and full approval usually within 1–2 weeks if documents are complete.
- Conveyancer begins transfer once bond is lodged (seller usually appoints transfer attorney but buyer pays). Conveyancer requests compliance certificates and rates clearance; lodges transfer with Deeds Office. Most transfers take ~8–12 weeks, but can be longer if there are municipal delays or title issues.
- Bond and transfer register at Deeds Office → bank pays the seller and bond registers → you collect keys when occupational terms are satisfied.
7) Inspection checklist — look like you mean business
Before unconditional acceptance, either include an inspection condition in the OTP or arrange an independent home inspection. Key checks:
- Roof & gutters (any leaks?).
- Damp & mould (inside and under floors).
- Electrical wiring (old fuse boards, non-compliant wiring).
- Plumbing (pressure, leaks, geyser condition).
- Structural cracks or subsidence signs.
- Boundary/fence lines and servituties (are there shared rights of way?).
- Security, burglar bars, alarms and neighbourhood safety.
- For sectional title: check levies, water/electricity history, sinking fund status.
If serious defects show, either renegotiate, ask for repairs, or walk away if the seller refuses.
8) Negotiation & common mistakes first-timers make
- Don’t skip finance clause in the OTP — this protects you if bond finance falls through.
- Never stretch to the max. Lenders give you an amount — that doesn’t mean you should borrow it all. Budget for life changes (interest hikes, children, job changes).
- Check levies & municipal accounts closely for sectional title units. Hidden arrears can bite you.
- Don’t assume “as seen” is free of problems. Photos can hide damp, poor finishes, or suspicious DIY. Always inspect in person (and if possible, get a pro).
9) Practical printable checklist (tick as you go)
- [ ] Get credit report, fix errors.
- [ ] Save for deposit & emergency buffer.
- [ ] Gather documents: ID, proof of residence, 3 months’ payslips, 3 months’ bank statements, latest municipal account (if available), signed OTP when ready.
- [ ] Get bond pre-qualification / in-principle approval.
- [ ] Book independent inspection.
- [ ] Check for FLISP/subsidy eligibility if applicable.
- [ ] Budget for transfer duty, conveyancing, bond fees (ask conveyancer for estimate).
- [ ] Confirm dates for occupation, transfer and bond registration with conveyancer & agent.
- [ ] Finalise insurance from registration date.
10) FAQ (short & direct)
Q — Do I always pay transfer duty?
A — No: there’s a zero-duty threshold. Values below the SARS threshold attract no transfer duty; above it, rates apply as per the SARS bands (check the current table).
Q — How long will transfer take?
A — Usually 8–12 weeks from OTP signing, though it can be shorter or longer depending on the municipality, Deeds Office backlog and how quickly parties respond.
Q — What documents should I prepare right now?
A — ID, proof of residence, payslips, bank statements, signed OTP (once you have it) — banks publish similar checklists you can follow.
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Lake Properties Pro-Tip (the bit that actually helps)
Don’t buy alone. Put together a trusted team before you sign anything: a reliable estate agent who knows the suburb, a bond originator or bank loan specialist, and a conveyancing attorney you can trust (ask for a written estimate of transfer and bond costs). Bonus: ask your agent to include a reasonable finance clause and inspection clause in the Offer to Purchase — these two clauses protect a first-time buyer more than price haggling ever will.
If you want, I can convert this into a one-page printable PDF checklist for Lake Properties’ clients (branded, ready for your blog as a lead magnet). Would you like that next?
Sources & further reading (for accuracy and calculators)
- SARS — New transfer duty rates effective 1 April 2025.
- FLISP / Provincial housing pages — eligibility & income brackets for first-time buyer subsidies.
- What documents banks ask for when applying for a home loan.
- Bond registration and attorney fee guidance (fee scales vary by bond size).
- Full property transfer & timing guide (steps and typical timelines).
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