You've found the house, the offer is accepted and the bank has said yes. Then the conveyancer sends a quote, and suddenly you need a large sum in cash that you hadn't budgeted for. Many Cape Town buyers get caught out this way, and the question they ask next is almost always the same: can I add the transfer costs to my home loan?
Sometimes, yes. It depends on your bank, your profile and the price of the property. Here is how it works, with examples from Athlone, Crawford and Rondebosch East.
What Are Transfer Costs, Exactly?
Transfer costs are the once-off expenses of legally moving a property into your name. They are separate from your deposit and from your monthly bond repayment. They usually include:
- Transfer duty: a tax paid to SARS on the property's value.
- Conveyancing (transfer) attorney fees: for registering the property in your name.
- Bond registration fees: paid to the bond attorney for registering the bank's mortgage over the title deed.
- Deeds Office fees, FICA, postage and sundries: smaller administrative charges.
- Bank initiation fee: a once-off lender charge, capped under the National Credit Act.
Buyers also forget rates clearance figures, municipal deposits and moving costs. Those aren't part of the legal transfer, but they still need cash. Sellers must also provide the right compliance certificates before transfer can proceed, and our guide on which compliance certificates are needed for a property transfer explains what to expect.
Transfer duty and transfer costs are different things. Transfer duty is the SARS tax, while "transfer costs" often means the attorney's fees and disbursements. When someone quotes you a figure, ask which one they mean. For a full breakdown, read Transfer Costs in South Africa: What Buyers Actually Pay. Absa also publishes a useful overview of the real cost of buying a home.
Next step: Before you sign an offer to purchase, ask Lake Properties for a full transfer-cost estimate so you know exactly how much cash you need on registration day. Call 083 624 7129 or email info@lakeproperties.co.za.
Can You Really Finance Transfer Costs?
You can, but only through a bond that is larger than the purchase price, commonly called a 105% or 110% bond. Most standard bonds stop at 100% of the price, so you pay the transfer costs in cash.
Some lenders do advertise extra finance for these costs. Absa's MyHome Loan page currently describes financing of up to 100% for properties capped at R2.5 million, with the possibility of an extra 8% towards transfer and bond registration costs. It lists a gross monthly household income of up to R34,800 as the target. Absa's first-time buyer page, though, advertises up to 110%, with the extra 10% for the same purpose and a loan term of up to 20 years if you're approved above 100%.
So the percentage varies by product and buyer type, and lender terms change often. Treat any figure as something to confirm in writing with the bank or your bond originator.
Approval is never automatic. The bank looks at your credit record, income, existing debt and the property itself. A bond above 100% is a bigger risk for the bank, so you may be offered a higher interest rate than a buyer putting down a deposit.
A bigger bond is not free money
Say you borrow an extra R100,000 to cover costs. Nedbank lists the prime lending rate at 10.75% since 25 September 2026 (Nedbank repo and prime rates). At that rate over 20 years, the extra R100,000 adds about R1,015 a month to your repayment, and you repay roughly R244,000 over the full term. That is an estimate only, since your actual rate and term will differ. The point is that you get cash-flow relief now and pay for it over two decades.
Next step: Speak to Lake Properties and a bond originator before you apply, so you can compare 90%, 100% and above-100% options side by side.
Transfer Duty in South Africa: The 2026/27 Rates
Transfer duty is a progressive tax paid by the buyer. The scale was confirmed unchanged for 2026/27 in the February 2026 Budget, so the rates that took effect in 2025 still apply. You can check them on the SARS transfer duty page, and ooba's transfer duty guide has a handy explanation.
| Property value | Transfer duty |
|---|---|
| Up to R1,210,000 | 0% |
| R1,210,001 to R1,663,800 | 3% of the value above R1,210,000 |
| R1,663,801 to R2,329,300 | R13,614 + 6% above R1,663,800 |
| R2,329,301 to R2,994,800 | R53,544 + 8% above R2,329,300 |
| R2,994,801 to R13,310,000 | R106,784 + 11% above R2,994,800 |
| R13,310,001 and above | R1,241,456 + 13% above R13,310,000 |
Your conveyancing attorney normally collects the duty from you and pays SARS. The transfer cannot be registered at the Deeds Office until SARS issues the duty receipt. If you buy from a VAT-registered developer, VAT is charged instead of transfer duty, never both. Get written confirmation of which applies before you sign.
Next step: Check the SARS table before making an offer, then ask Lake Properties for a personalised cost breakdown.
Athlone vs Crawford vs Rondebosch East: Transfer Costs Compared
These three Southern Suburbs neighbours sit close together but price very differently, which changes the transfer duty you face. The sample prices below are each suburb's median municipal value from the City of Cape Town's GV2025 roll, as reported by StreetSignal. They are not market prices, and sale prices often exceed municipal values, so your real duty may be higher. The duty figures are my calculations from the SARS table above. Attorney and bond fees come on top.
| Athlone | Crawford | Rondebosch East | |
|---|---|---|---|
| Median municipal value (GV2025) | About R1.70 million (StreetSignal) | About R2.36 million (StreetSignal) | About R2.84 million (StreetSignal) |
| Transfer duty at that value | About R15,800 | About R56,000 | About R94,400 |
| Value growth, 2022 to 2025 | About 8.0% a year | About 4.0% a year | About 3.0% a year |
| Typical buyer | First-time buyers, young families, investors | Growing families wanting space and flatlets | Established families focused on schools and UCT |
| Cash-flow pressure | Lower | Moderate | Moderate to high |
| Within the R2.5 million cap of Absa's MyHome Loan? | Yes, at median value | Yes, at median value | No, median value is above the cap |
Athlone offers the lowest entry price and the strongest recent growth in municipal values, which also means the smallest transfer duty bill of the three. Rondebosch East carries the premium, and at its median value the duty alone is close to six times Athlone's. Crawford sits in the middle. For a deeper local comparison, read Crawford, Athlone or Rondebosch East? A Local's Guide, and if your budget can't stretch to Rondebosch East, see Is Athlone a Good Alternative?
Prices are also rising across the metro, so the duty on tomorrow's purchase may be higher than today's. Our piece on whether Cape Town property prices will keep rising in 2026 looks at where the market is heading.
Remember that above-100% products can carry price caps, such as R2.5 million on Absa's MyHome Loan. If you are looking in Rondebosch East, financing your costs this way may not be an option.
Next step: Tell Lake Properties your budget and preferred suburb, and we'll match you with homes that fit both your monthly repayment and your upfront cash requirement.
Three Illustrative Buyer Scenarios
These are composite examples built to show how the numbers work. They are not real clients. Duty figures come from the SARS scale above.
Scenario 1: A first-time buyer couple in Athlone. A couple buys a R1,950,000 home. Transfer duty is R13,614 plus 6% of the R286,200 above R1,663,800, so about R30,800, before attorney and bond fees. They qualify for a 100% bond but choose to save for the costs rather than stretch to a bigger bond, because a bigger loan would add to their monthly instalment. The lesson: a 100% bond still leaves transfer costs to be paid in cash, so budget for them separately from the deposit.
Scenario 2: A family buyer in Rondebosch East. A buyer purchases at R3,500,000. Duty is R106,784 plus 11% of the R505,200 above R2,994,800, so about R162,400. She takes a 90% bond and pays the costs from savings. Financing them would have added borrowed money at bond interest rates, and a price this high would fall outside a typical capped above-100% product anyway. The lesson: at higher prices, costs are large, and financing them can add meaningfully to the total you repay.
Scenario 3: A family upgrading in Crawford. A family sells their existing home and buys at R2,500,000. Duty is R53,544 plus 8% of the R170,700 above R2,329,300, so about R67,200. They use part of their sale proceeds for the costs. The equity helps them avoid a high loan-to-value bond and negotiate a better rate. The lesson: sellers who are also buyers can often fund costs from proceeds instead of borrowing them.
Next step: Ask Lake Properties for a buyer-readiness check covering deposit, transfer costs, bond approval and suburb options.
10 Questions Buyers Ask About Financing Transfer Costs
1. Can transfer costs be added to my home loan in South Africa?
Yes, but only if the bank approves a bond above 100% of the purchase price. Not every buyer or property qualifies.
2. Which costs can usually be financed?
Typically transfer duty, attorney fees and bond registration costs, depending on the lender's product rules.
3. Do all banks offer 108% or 110% bonds?
No. Availability varies by lender, product and buyer profile, so ask your bank or originator.
4. Is transfer duty payable on every property?
No. Properties valued at R1,210,000 or less attract 0% duty. Attorney and bond fees still apply.
5. Are bond registration costs the same as transfer costs?
No. Bond registration is a separate cost for registering the bank's mortgage over the title deed.
6. Does a bond above 100% raise my monthly repayment?
Yes. The extra amount is repaid with interest over the term.
7. Are there price limits?
Often. Absa's MyHome Loan, for example, lists a R2.5 million property cap.
8. Should I finance the costs or pay cash?
Pay cash if it doesn't drain your emergency fund. Finance them if keeping savings accessible matters more to you than the extra interest.
9. Do new developments have transfer duty?
If the developer is a VAT vendor, VAT is charged instead of transfer duty. Get written confirmation before signing.
10. When are transfer costs due?
Generally before or at lodgement for registration. Your attorney will tell you when, but plan well ahead.
Next step: Request Lake Properties' transfer-cost checklist before you submit an offer to purchase.
How to Improve Your Chances of Higher Finance
- Keep a clean credit record and pay accounts on time.
- Reduce short-term debt before applying.
- Prepare full proof of stable income and affordability documents.
- Compare offers through a bond originator rather than taking the first bank quote.
- Ask exactly what the extra finance covers, since it's meant for transfer and bond costs, not general spending.
- Have a fallback plan: a slightly cheaper home or a more accessible suburb if the extra finance isn't approved.
Next step: Book a pre-qualification chat with Lake Properties and a trusted bond originator before you start viewing homes.
Lake Properties Pro-Tip
Don't budget only for the deposit. Many Cape Town buyers qualify for a bond but are caught out by transfer duty, attorney fees, bond registration, rates clearance and moving costs. Even if you're buying under R1.21 million and pay no transfer duty, attorney and bond costs still apply. Ask for a written cost estimate before you sign, and compare the lifetime cost of a 100% bond plus cash costs against an above-100% bond. A lower monthly instalment today can mean a much larger total repaid.
Ready to buy in Athlone, Crawford or Rondebosch East? Call Lake Properties on 083 624 7129 or email info@lakeproperties.co.za.
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