How Bond Registration Works in South Africa
When you buy a home with a mortgage, you pay bond registration costs on top of the purchase price. This guide explains exactly what bond registration is, who pays for it, and how much it costs.
Key Takeaways
- Bond registration is a once-off legal cost when taking out a home loan
- You pay both transfer costs AND bond registration costs
- Bond registration is done by a bond attorney appointed by the bank
- Costs are calculated on a sliding scale based on the bond amount
- Budget for roughly 1-2% of the bond amount for registration costs
What is bond registration?
Bond registration is the legal process of registering your home loan (bond) against the title deed of the property at the Deeds Office. It gives the bank a legal claim over your property as security for the loan.
- Creates a legal record of the bank's claim over your property
- Done at the Deeds Office by a bond attorney
- Required for all home loans in South Africa
- Cannot be avoided when taking a mortgage
Who pays for bond registration?
The buyer pays bond registration costs, not the bank. This is in addition to transfer duty and transfer costs. The bank appoints the bond attorney, but you pay their fees.
- Buyer pays all bond registration costs
- Bank appoints the attorney (you cannot choose)
- Costs are separate from transfer duty
- Usually paid before registration is completed
How much does it cost?
Bond registration costs are calculated on a sliding scale based on the bond amount. For a R1,500,000 bond, expect to pay approximately R25,000-R35,000 in bond registration fees. Use the NavigateZA Bond & Transfer Cost Calculator for an accurate estimate.
- Sliding scale based on bond amount
- Includes attorney fees, Deeds Office fees, and VAT
- Typically R15,000-R40,000 depending on bond size
- Use the calculator for your specific amount
Ready to see your own numbers?
Use the Bond & Transfer Cost Calculator