First home loan: direct with bank or through bond originator?

ViciousClone said:
Once you start paying, have you changed over to a new bank within the first year?
For better rates, and is it common to move that early. Or, would it be bad practice to do so.
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You would probably have to do the math to weigh up is it worth your time and money to change so quickly. It's kind of 'how long is a piece of string' type question.

Also I wonder if doing it too soon would be pointless as your credit rating is likely impacted by the fact that you recently took up so much new credit.

edit: Speaking for myself, my new bond is now only 7 weeks old, my interest rate is 2.1% below prime, I don't see myself trying to change things any time soon because the rate is really good and I don't plan on drawing this thing out to the full loan term.
 
RogueTr00per said:
You would probably have to do the math to weigh up is it worth your time and money to change so quickly. It's kind of 'how long is a piece of string' type question.

Also I wonder if doing it too soon would be pointless as your credit rating is likely impacted by the fact that you recently took up so much new credit.
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Indeed

Spoke to a few people this morning.

For now, i'm trying to understand why Absa's appointed attorneys are charging 190k for transfer and laywer fees, whereas the others are sitting 30k lower (Private firms)

Regarding the lending rate, it seems we're going to land on 9.2% over 20 years.

EDIT: Maybe i'm not understanding how Absa is including the cost here, but they're happy with the 2.4mil (Full 100%) when I asked that they include cost, transfer and lawyer (Which was estimated around R160-165k) they came back with an approved amount of R2.59mil, which they stated includes the cost.

It also spikes my interest to 10.4% - So we said we'll cover the cost, dont add it to the bond. To rather revert back to the 9.2% and 2.4mil offer and i'll cover the transfer and lawyer fees through the respective OTP listed firms.

Sorry, i'm quite green with all of this, so this is merely me spitballing and getting a feel for what they're trying to do.
 
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ViciousClone said:
Indeed

Spoke to a few people this morning.

For now, i'm trying to understand why Absa's appointed attorneys are charging 190k for transfer and laywer fees, whereas the others are sitting 30k lower (Private firms)

Regarding the lending rate, it seems we're going to land on 9.2% over 20 years.

EDIT: Maybe i'm not understanding how Absa is including the cost here, but they're happy with the 2.4mil (Full 100%) when I asked that they include cost, transfer and lawyer (Which was estimated around R160-165k) they came back with an approved amount of R2.59mil, which they stated includes the cost.

It also spikes my interest to 10.4% - So we said we'll cover the cost, dont add it to the bond. To rather revert back to the 9.2% and 2.4mil offer and i'll cover the transfer and lawyer fees through the respective OTP listed firms.

Sorry, i'm quite green with all of this, so this is merely me spitballing and getting a feel for what they're trying to do.
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This might help :)


The "Hidden" Cost of Property Just Went Up

If you’re planning to buy property after July 1st, your "hidden" costs just got more expensive.
Most people budget for the deposit and the bond repayment. But the one thing that catches every first-time buyer off guard is the Conveyancing Fees.

Starting 1 July 2026, the recommended fee guidelines for property transfers and bond registrations in South Africa are increasing by an average of 3.4%.

Why is this happening?
This is the annual adjustment published by the Law Society of South Africa (LSSA) and the Legal Practice Council (LPC). It’s an inflationary update to cover the rising costs of running a legal practice - everything from specialized software and cybersecurity to the staff who handle your paperwork at the Deeds Office.

How does this affect you?
The Buyer Pays - In South Africa, the buyer is responsible for the transfer costs and the bond registration costs.

Compounding Costs: While 3.4% sounds small, it applies to the professional fee component of your costs. On a R2 million property, you’re looking at an extra few thousand Rand that you need to have in cash before the deal can move forward.

It’s Not Just One Fee: Remember, your "Transfer Costs" are made up of:
- Professional Fees (The ones going up on July 1).
- VAT (15% on the professional fee).
- Deeds Office Fees (Government charges).
- Transfer Duty (Tax to SARS—this hasn't changed).

If you’ve just signed an Offer to Purchase, ask your attorney for a pro-forma cost sheet immediately. Make sure it reflects the July 2026 tariffs if your registration is happening after the 1st.

Don't let a few thousand Rand in "hidden" costs stall your transfer.

Follow the route. See the data. Protect your equity.
 
Gtx Gaming said:
This might help :)


The "Hidden" Cost of Property Just Went Up

If you’re planning to buy property after July 1st, your "hidden" costs just got more expensive.
Most people budget for the deposit and the bond repayment. But the one thing that catches every first-time buyer off guard is the Conveyancing Fees.

Starting 1 July 2026, the recommended fee guidelines for property transfers and bond registrations in South Africa are increasing by an average of 3.4%.

Why is this happening?
This is the annual adjustment published by the Law Society of South Africa (LSSA) and the Legal Practice Council (LPC). It’s an inflationary update to cover the rising costs of running a legal practice - everything from specialized software and cybersecurity to the staff who handle your paperwork at the Deeds Office.

How does this affect you?
The Buyer Pays - In South Africa, the buyer is responsible for the transfer costs and the bond registration costs.

Compounding Costs: While 3.4% sounds small, it applies to the professional fee component of your costs. On a R2 million property, you’re looking at an extra few thousand Rand that you need to have in cash before the deal can move forward.

It’s Not Just One Fee: Remember, your "Transfer Costs" are made up of:
- Professional Fees (The ones going up on July 1).
- VAT (15% on the professional fee).
- Deeds Office Fees (Government charges).
- Transfer Duty (Tax to SARS—this hasn't changed).

If you’ve just signed an Offer to Purchase, ask your attorney for a pro-forma cost sheet immediately. Make sure it reflects the July 2026 tariffs if your registration is happening after the 1st.

Don't let a few thousand Rand in "hidden" costs stall your transfer.

Follow the route. See the data. Protect your equity.
Click to expand...

In my 20 years in the property game, I had this motto so far:

1. Pay all fees cash!
2. If taking a bond out, put max 10% down as a deposit, as you cant re-use that ever again
3. Re-use bonds to buy more property cash

My winning recipe!
 
zerocool2009 said:
In my 20 years in the property game, I had this motto so far:

1. Pay all fees cash!
2. If taking a bond out, put max 10% down as a deposit, as you cant re-use that ever again
3. Re-use bonds to buy more property cash

My winning recipe!
Click to expand...
1. That’s the plan, lawyer and transfer, we’ll pay
2. Mind spotting me some money please
3. Is this applicable to a Flexi account (Absa calls it Flexi, where you have access to the money as you pay your bond)
 
ViciousClone said:
1. That’s the plan, lawyer and transfer, we’ll pay
2. Mind spotting me some money please
3. Is this applicable to a Flexi account (Absa calls it Flexi, where you have access to the money as you pay your bond)
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Nr 3…. Access bond … flexi bond…. Its the same thing

I personally call it my savings pocket

Bought 7 properties worth R11 000 000 now, and a car worth R1000 000, using a R1000 000 bond

You now uncovered the smartest trick in the world, how to use a bond smartly.

You can also simulate a much lower interest rate, just by prepaying it.
 
Landed on 9.2% for 100% bond with Absa
Betterbond closed off their portion yesterday and submitted everything

Absa called today at 12pm to confirm everything and that they will be sending the request to the attorneys office who will contact us to sign.

Attorney called at 4pm asking for some documents so that they can prepare everything. Also applied a 50% discount on the bond registration fees (R24k)

I’d say 2.4mil on 9.2% is a good start as a first time buyer?
 
ViciousClone said:
Landed on 9.2% for 100% bond with Absa
Betterbond closed off their portion yesterday and submitted everything

Absa called today at 12pm to confirm everything and that they will be sending the request to the attorneys office who will contact us to sign.

Attorney called at 4pm asking for some documents so that they can prepare everything. Also applied a 50% discount on the bond registration fees (R24k)

I’d say 2.4mil on 9.2% is a good start as a first time buyer?
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Good rate do you already bank with Absa? I know I got a quarter of a percent or something off the rate if I switched to them back when we got our bond. Regarding the insurance did you have the property assessed yourself? When I had an assessor come out he said the property was heavily undervalued by ABSA in terms of rebuilding a total loss at todays prices.
 
Kyle15 said:
Good rate do you already bank with Absa? I know I got a quarter of a percent or something off the rate if I switched to them back when we got our bond. Regarding the insurance did you have the property assessed yourself? When I had an assessor come out he said the property was heavily undervalued by ABSA in terms of rebuilding a total loss at todays prices.
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I bank with FNB, my wife is with Absa - Asked if I could move over to Absa if I could get even more of an interest rate cut, no dice. Because my wife is already banking with them.

For starters, we just went on the property assessment that Absa did to get the building insurance through my own insurance company - I could always bump it later on.
 
ViciousClone said:
My private insurance provider came back with a R368 premium, with an excess of R1000, at a 3 million sum assured.

That sounds pretty good?
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Looks like a good rate but it's not only about premium when everything is restricted or excluded.
Who is your current insurer?
 
Hemi300c said:
Looks like a good rate but it's not only about premium when everything is restricted or excluded.
Who is your current insurer?
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I’ve been using Stepp
Cars, house contents etc. everything into one

Adding the building insurance would form part of the packaged monthly premium
 
ViciousClone said:
I bank with FNB, my wife is with Absa - Asked if I could move over to Absa if I could get even more of an interest rate cut, no dice. Because my wife is already banking with them.

For starters, we just went on the property assessment that Absa did to get the building insurance through my own insurance company - I could always bump it later on.
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Is the 9.2% with the banking rate concession? I think mines sitting at about 9.1% with the main banking interest cut.
 
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