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The full cost of buying a home
Buying a home costs more than the purchase price. On top of your deposit you usually pay transfer duty, attorney fees, Deeds Office fees and bond registration costs, and you also need money for moving and getting set up. Plan for these costs before you make an offer, or you may find you cannot close the deal.
The costs of the purchase itself
Deposit
The deposit is the part of the price you pay from your own money. It is not a cost in the sense of being lost, because it goes towards the price, but you need it in cash. Some banks lend the full price and some ask for a deposit, depending on your finances. See how much deposit to buy a house.
Transfer duty or VAT
Transfer duty is a tax paid to SARS. Nothing is due up to R1 210 000, and above that the rate rises in bands. On a R2 000 000 home it comes to R33 786. If you buy new from a developer who is a VAT vendor, you pay VAT at 15% (normally included in the price) and no transfer duty. More in transfer duty explained.
Transfer attorney’s fees
The seller usually appoints the transfer attorney (the conveyancer), but the buyer pays the fee, unless your offer says otherwise. Fees are not set by law and vary between firms, so ask for a written quote. VAT at 15% is added to the fee.
Deeds Office fees
The Deeds Office charges a fee to register the transfer, based on a gazetted schedule that has applied since 27 March 2026. For example, registering a transfer of R1 million to R2 million costs R1 738, plus a R52 lodgement fee. Other costs on the attorney’s account may include searches and postage.
The costs of the bond
If you take a bond, you also pay to register it. That means the bond attorney’s fee, the Deeds Office fee for the bond and VAT on the fee. A bond of R1 million to R2 million has the same R1 738 Deeds Office fee plus R52 lodgement as above. Some banks charge an initiation fee on the loan, so ask your bank. Details are in bond registration costs explained.
Other money you may need
- Rates and levies in advance. Many municipalities ask for a few months of estimated charges up front when the seller gets a clearance certificate. The amount varies, so ask your conveyancer. Unused money is refunded, often slowly. Sectional title buyers may also pay levies in advance.
- Occupational rent. If you move in before registration, you usually pay the seller rent for the period. Some sources mention 1% of the price a month as an example, but it is negotiable, so check what your offer says.
- Inspections and reports. You may want a building inspection or a plumbing report. These cost extra and you arrange them yourself.
- Insurance. The bank will want the home insured from registration. See insurance explained.
- Moving and setting up. Moving, deposits for electricity and water, a new lock, curtains and repairs add up.
Compliance certificates, such as the electrical certificate, are usually the seller’s cost, but the offer decides this. Check who pays before you sign.
Putting it into a budget
Start with the price. Add transfer duty, then the transfer and bond costs, then a cushion for the extras above. The total is the cash you need besides the deposit, unless the bank agrees to lend you something towards costs.
Here is a rough way to check. For a home at R1 500 000, transfer duty is R8 700. If your attorney quotes R25 000 for the transfer and R20 000 for the bond (made-up figures), the three together are R53 700 before extras. Get your own quotes and do your own sum.
Many buyers are caught out by timing. The attorney usually wants the transfer costs paid into their trust account before registration, so the money needs to be ready weeks before you get the keys.
What to do next
- Decide a price range and work out transfer duty at the top of it.
- Ask two attorneys for a written quote covering both transfer and bond.
- Add a cushion for moving and setting up.
- Start a savings plan for the total.
The transfer costs calculator gives you a quick estimate, and the deposit savings calculator shows how long it takes to save. For an overview of the buying process, start with the first-time buyer’s guide.
This article is general information for South African readers, not legal, financial or tax advice. Rules and rates change, so check your own situation with an attorney, your bank or a tax practitioner. Our property calculators can help you work out the numbers.