Gah! Buying a house - pre approved, offer accepted, cannot afford the transfer fees.

[Laserdick]

I can't be the only one to have faced this, any hot tips?

Cheers!

 

[blunomore]

Could you not have calculated the transfer fees beforehand? Also, can you not get finance that includes the transfer fees?

 

[GreyBush]

Could you not have calculated the transfer fees beforehand? Also, can you not get finance that includes the transfer fees?

Estate agents should have told him, it's an industry standard price so they can easily look it up.

 

[Laserdick]

Could you not have calculated the transfer fees beforehand? Also, can you not get finance that includes the transfer fees?

Yes to the first part but that ship as sailed.

The second part is what I am hoping for but no idea of how to go about it. Hoping to hear from other who have been through similar processes.

 

[Nerfherder]

You will have to get a short term loan.... like a personal loan.

That is pretty much what most of us are having to do. We got a loan from the parents.

 

[etwylite]

Are you selling another property and funds won't clear in time? then you could apply for bridging finance

Alternatively go back to your mortgage lender and request a larger sum. Or personal loan, or overdraft, credit cards etc.

and don't forget the deposits you'll have to stump up for electricity, water deposits etc on transfer.

and ask the attorneys for a discount on transfer fees.

 

[Ou grote]

I can't be the only one to have faced this, any hot tips?

Cheers!

Nope most people would've asked the Estate agent, Bank, a place like Ooba, or looked it up somewhere like here:
http://www.ooba.co.za/home-loan/calculators/calculators:bond-transfer-costs#bondForm

 

[ToxicBunny]

If you can't afford the transfer duties etc in cash, you will need to get a short term loan to cover them unfortunately.

If your offer has been accepted you are now in the sticky situation of needing that money.

 

[Ockie]

My sis was very good with this. She was saving up for about 2 years knowing that when she finds the place she wants ... she will need money for transfer crap. When she bought 3 months ago she had the money and a little bit left over to buy goodies for the house.

As far as I know...if your bond is approved and offer accepted...you are legaly bound....so you will have to either k@k the money out or get a loan somewhere. Capitec have good rates as far as I know and quick approval. Else...see if your bank cant add it onto your bond? Not sure if that is allowed though.

 

[ToxicBunny]

My sis was very good with this. She was saving up for about 2 years knowing that when she finds the place she wants ... she will need money for transfer crap. When she bought 3 months ago she had the money and a little bit left over to buy goodies for the house.

As far as I know...if your bond is approved and offer accepted...you are legaly bound....so you will have to either k@k the money out or get a loan somewhere. Capitec have good rates as far as I know and quick approval. Else...see if your bank cant add it onto your bond? Not sure if that is allowed though.

Banks aren't allowed to finance those fees anymore as far as I'm aware. (at least not as part of the bond)

 

[scudsucker]

You will have to get a short term loan.... like a personal loan.

Me too. Or rather I blew my credit card and overdraft.

 

[blunomore]

As far as I know...if your bond is approved and offer accepted...you are legaly bound....so you will have to either k@k the money out or get a loan somewhere.

If the value of the property is less than R250 000 the transaction is subject to a cooling-off period of five days, calculated from the date of signature of the OTP. What property is that cheap, though?!

 

[alternatestat3]

You have 2 options, as many have said here. Either you find a way to loan the money (try a personal loan as interest will be less than a credit card in most cases), or you ask the bank to finance it.
A certain dark, blue in color bank, will give you 104% loan if you qualify. But remember that your interest rate will be even higher that the original grant you received. But if you can settle this "Shortfall" within, lets say, 6 months, you can go back to the bank and renegotiate your loan because your circumstances have changed

 

[Ockie]

If the value of the property is less than R250 000 the transaction is subject to a cooling-off period of five days, calculated from the date of signature of the OTP. What property is that cheap, though?!

I was about to post that lekker saying the boys use on mybb...."Biets...PLEASE " but then finished reading your post lol.

The person that came up with that lighbulb idea is a moron or seriously deluded.

 

[pampoenskyf]

I once applied for a 108% bond through a bond originator in order to cover the transfer fees

 

[Lupus]

We had to take a personal loan to afford the transfer fees.

 

[Mila]

Banks aren't allowed to finance those fees anymore as far as I'm aware. (at least not as part of the bond)

+10

This is why our properties are so over inflated. During the property boom in the late 2000’s everybody was a shoe in for a loan as the requirements were very low and banks handed out 110% to 125% loans to everybody.
They soon found out that they could not afford these houses and tried to sell it at the price they bought it for, which also happened because banks just handed out loans. So by the time the second person got hold of a property it was sometimes 50% over its real worth. People in this time also refinanced their houses to buy cars and toys. Nasty.


Thanx to banks and estate agents.

It is stopped now. It is hard to get a 100% loan these days.

 

[macxsanity]

i also had to take out a personal loan which i am finishing to repay next august. that is the easiest way to go .

 

[blunomore]

I was about to post that lekker saying the boys use on mybb...."Biets...PLEASE " but then finished reading your post lol.

The person that came up with that lighbulb idea is a moron or seriously deluded.

Well, the good news is that if you buy a house as a result of direct marketing, you can also get the 5 day cooling-off period from the date of transfer of the property. Remember, only direct marketing, not e.g. show houses and print advertisements.

 

[Viper25]

Good luck dude. You should have done your homework before you even started to look for a house to purchase.