What are the home loan costs?

When opening the door to secured lending with FNB, it's important to consider the costs involved.

Get a pre-approval

Buying a home is probably one of the biggest investments you will make in your life, and a pre-approval will help you figure out how much you can afford. With a pre-approval you know the exact home loan amount you could qualify for, making this new asset acquisition an easy process with informed decision-making on expenditures.

Tips before you buy

With our full suite of lending solutions, the opportunity to own the home of your dreams, with real help, is right at your fingertips.

Do your research

Have an idea of the average price of property in the area in which you want to inhabit. You can access an area report via nav» Home on the FNB App.

Know property values

Attaining the right knowledge and having a good idea of what the properties in the area have been selling for, is vital. This gives you the estimated value on a property you are considering. Ask the agent if the price seems high.

Stick to your budget

Stick to your budget to avoid the frustration of viewing properties you may not be able to afford. Use the home loan repayment calculator in nav» Home on the FNB App to estimate your monthly repayments and find a home that suits your budget.

Costs and fees when buying a property

It is crucial to understand the upfront costs that come with buying a property before making a final purchase. The costs you can anticipate are as follows:

Purchase price deposit

This is a payment made to secure the property and this deposit amount is the difference between the loan amount and purchase price.

Registration costs

The attorneys that register your bond on your behalf charge fees for drawing up the necessary paperwork, conducting FICA checks and lodging your bond at the Deeds Office. Fees are usually charged on a sliding scale of which the bond originator will inform you.

Transferring costs

A fee that is paid by the buyer to the attorney nominated by the seller to transfer ownership of the property.

Postage and sundry costs

The cost of documents and certificates that the conveyancing attorney will incur in order to register the bond on the property.

Deeds Office registry

A fixed fee for the local registration of the property and/or loan at the Deeds Office.

Transfer duties

Transfer duties are payable by the purchaser of the property to the South African Revenue Services (SARS) for properties valued at R900 000 or more. These fees are thus, calculated as a percentage of the purchase price of the property and are dependent on the purchaser's legal status. This payment is payable before the registration of the transfer or within 6 months after signing the OTP agreement. FNB will pay a percentage of their switching costs (registration/attorney fees up to the original bond amount) with the intent to offer competitive rates and exceptional service when applicants apply using nav» Home on the FNB App.

Other upfront costs

Transfer fees
Conveyancing fees
Deposit for the water and electricity account
Monthly levy duty (if purchasing in an estate as opposed to a stand-alone residential property)

Credit score and its implications

How to determine if you have a good credit score? A higher credit score typically represents good credit health. Lenders are more inclined to lend to people with a higher score and would typically lend money to them at lower interest rates. The lower the credit score, the higher the risk that the individual poses to the bank and thus influences the outcome of the credit application. How to improve your credit-rating? For a start, avoid paying late or missing payments. People that make their payments on time are considered lower risk borrowers.

Monthly costs you can anticipate

Home ownership is about more than just making the home loan repayments. There are other monthly costs that you need to be able to afford.

Monthly service fee

Charged on all loans for the term of the loan. Fees are charged in terms of the NCA.

Life and disability cover

Ensures the home loan is paid off in the event of death or permanent disability.

Monthly home loan repayment

These are the monthly repayments towards the home loan.

Comprehensive cover

Protects your property against fire, floods, burst geysers, plumbing issues and natural disasters.

Levies and municipal costs

Levies, rates, taxes, electricity, water, sewerage and refuse collection.

Maintenance costs

Save monthly for any maintenance that may be needed for the property.

Glossary

Service fee

A monthly fee is charged by the bank for maintaining and administering a home loan account. This is also called an administration fee.

Municipal costs

Rates & taxes, electricity, water, sewerage, refuse collection, deposit to activate or connect municipal account and payable to your local municipality.

Commission

Paid to either an estate agent or any other intermediary selling your property.

Municipal and legal costs

These costs are directly handled by the estate agent who will sell the property.

Cancellation and registration costs

Should you decide to switch your home loan, FNB will pay for your cancellation and registration costs. We will also take your bond back to the original term of up to 20 years. Get your eBucks back and enjoy personalised interest rates.

Calculators

Access calculators to find out your monthly home loan repayments or calculate the maximum home loan amount you qualify for.

*Note - As a legal entity: A legal entity is an individual or organisation which is legally permitted to enter into a contract and may be sued if they fail to meet their contractual obligations. A customer becomes a legal entity with the bank when they sign a contract for a home loan. The mortgage bond is also registered in the name of the legal entity. The South African Revenue Service regarding Capital Gains Tax if this is not your primary residence.