Beyond the bond: what buying a home really costs
The monthly bond repayment this calculator estimates is the headline number, but it is far from the only cost of buying property in South Africa. A realistic affordability picture accounts for the upfront transaction costs and the ongoing costs of ownership that continue long after the sale is finalised.
Upfront costs: transfer duty and bond registration
Transfer duty is a tax paid to SARS on property purchases, calculated on a sliding scale. Properties under R1.1 million currently attract no transfer duty, but above that threshold, the tax increases progressively. On top of transfer duty, you will pay conveyancing (transfer) attorney fees and bond registration attorney fees — together these upfront legal and tax costs typically add up to 8-10% of the purchase price.
| Purchase price | Approx. transfer duty | Approx. total upfront costs (incl. legal) |
|---|---|---|
| R900,000 | R0 | R70,000 - R90,000 |
| R1,500,000 | R12,000 | R135,000 - R165,000 |
| R2,500,000 | R56,000 | R225,000 - R275,000 |
Ongoing costs that continue for as long as you own
- Rates and taxes: paid to your municipality, based on the property's municipal value
- Levies: if buying into a sectional title scheme or estate, monthly levies can range from a few hundred to several thousand rand
- Homeowner's insurance: often required by your bank as a condition of the bond
- Maintenance: a widely used rule of thumb is budgeting around 1% of the property value per year for upkeep and repairs
Why a bigger deposit changes more than your bond amount
A larger deposit does more than reduce what you owe — it can also improve the interest rate your bank offers, since a lower loan-to-value ratio represents less risk to the lender. A 20% deposit instead of 10% can meaningfully lower both your monthly repayment and your total interest paid over the life of the bond.
The rent-versus-buy decision this calculator does not make for you
Affording a bond and it being the right financial decision right now are two different questions. If you are unsure whether buying makes sense for your timeline and situation, our rent vs buy guide walks through the trade-offs in detail, and the rent affordability calculator lets you compare the two paths on the same terms.