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| The actual bond costs and transfer fees that will be applicable to your home loan may differ slightly from those reflected as attorneys work only to recommended fee structures.
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| DEFINITIONS |
| Bond Amount: When a loan is granted for the sole purpose of purchasing a property, an amount (not less than the loan granted amount) is registered at the Deeds Office as security in favour of the Lender (the bank). |
| The Borrower (you) may, however, request that an amount higher than the loan granted amount be registered to provide for future improvements/renovations to your property without the delay of having to register another bond. This is also a cost saving as the additional stamp duty to register the higher amount is less than the cost of registering a bond. |
| Transfer fees: The cost of transferring ownership of a property from one person/legal entity to another (payable by the purchaser). This fee consists of transfer duty and VAT (calculated as percentage of the purchase price), payable to the government (as prescribed by law) and transfer costs (also called conveyancing fees) payable to the transferring (conveyancing) attorney for services rendered. This fee is not payable when switching from one bank to another, as there is no transfer of ownership to another person/legal entity. |
| Bond registration costs: Consists of the fee payable by you (the purchaser of a property) to a conveyancer (also called a transferring attorney) attending to the registration of a bond over the property in favour of the bank. This fee consists of stamp duty and VAT (as prescribed by law), transfer costs (also called conveyancing fees) payable to the transferring (conveyancing) attorney for services rendered as well as bond costs payable to the Deeds Office for the registration of the bond amount. |
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| These costs are also payable when switching from one bank to another. |
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The monthly service fee on accounts with a Total Loan granted > R 500 000, that does not fall within the NCA has been increased to R 28.50 (including VAT). The fee comes into force from the 1 August 2008.
Customers whose loans fall under the Usury Act (Total Loan granted < R 500 000, and entered into before the introduction of the NCA), will remain on the legislated fee of R 5, 70. |
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| DISCLAIMER |
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| While every effort has been made to ensure the accuracy of all calculators, no responsibility can be accepted for errors or omissions however caused. No responsibility for any loss occasioned to any person acting or refraining from action as result of material in this programme is accepted by Absa Bank Limited. |
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