MORTGAGE APPLICATIONS
includes transfer duty ( if a home is priced at over R1.1 million and not off-plan ), conveyancing attorney fees , administration fees and bond registration fees .
Using the current average firsttime homebuyer purchase price of R1 171 798 as an example , these fees would total just under R74 000 . However , we are seeing an increasing number of banks offering cost-inclusive lending to first-time buyers in the form of 105 % home loans which removes the obligation to put down a deposit as well as covering the upfront bond and
ENQUIRE NOW registration costs .
While the rise of 105 % home loans does remove some of the barriers to entry for first-time buyers , Lomberg cautions that these loans come with higher monthly repayments and a higher interest rate . If in doubt about which option would work best for you , use a free online tool such as ooba ’ s Transfer Cost Calculator to what you would need to have set aside to cover the upfront costs of your purchase .
First-time homebuyers whose monthly household income does not exceed R22,000 have access to a once-off First Home Finance subsidy which can be used towards a deposit or to off-set some of these costs .
The process of looking for your first home is incredibly exciting and with the help of experts , doesn ’ t need to be tedious and complicated . There is so much information available freely online to help young buyers , and to give you the peace of mind that you ’ re not alone on this journey .
Gavin Lomberg is the CEO of ooba Home Loans
Real Estate Investor Magazine JUNE 2024 73