Property finance is a major factor that needs to be taken into account when looking to apply for a home loan that you can ultimately afford. Home ownership and getting a home loan is a costly business to get involved in, and if you do not play your cards right by considering factors such as personal finances and all the hidden costs, you can make the wrong decision which could ultimately lead to your end.

CKM Home Loans can help.

With their expert knowledge and experience in the home loan industry in South Africa, CKM Home Loans will essentially guide you through the entire process of home loan application, ensuring that no activity or cost is left out, and ensuring that the home loan which you eventually decide upon is most ideal for you according to your personal needs and financial position.

One of the major activities which have to be carried out include paying the transfer costs; and CKM Home Loans will make sure that this is appropriately done.

Property Transfer Costs

CKM Home Loans defines transfer costs as being that of the tax which the Government levies on property transactions; and which is essentially referred to as the transfer duty. The tax is paid when you buy a property and it is transferred into your name. When you buy vacant land, you will pay transfer duty on the value of the land only, but if you buy an existing home the transfer duty is based on the value of the land and the building.

Depending on the size of the property, transfer costs are charged on a sliding scale, which means that the more expensive a property is the higher the transfer costs will be.

According to property value and costs, the scale for individuals is as follows:

• Below R 500 000.00 - no transfer duty.
• Between R 500 001.00 and 1 Million - A flat Rate of R 25 000.00
• Over 1 Million - R 25 000.00 + 8%
• Companies/Trusts/CC - Pay a flat rate of 10%.

For Example:

Purchasing a house for 1.2 Million means that you will pay R 25 000.00 for the first Million and 8% on R 200 000.00.

If you buy the property in the name of a close corporation, company or a trust, you will be charged a transfer duty of 10% of the purchase price.

There are also other costs involved, when purchasing a home. For detailed information on these costs Click Here , or use the calculators below to help you determine the costs associated with the purchase of property and those costs related to the registration of the home loan. These costs are often overlooked when purchasing a property and should be taken into account when assessing your affordability.

Click on One of the Following:

• The tables of Property 24 is recommended by us for calculating transfer fees and bond costs.
• The tables of ABSA is recommended by us for calculating all costs (transfer fees, bond costs and other costs). ABSA's tables also provide breakdowns of the costs and they are very user friendly.
• Standard Bank

CKM Home Loans is willing to help you through the process of applying for a home loan that will match your unique budget and personal property finance. So if you want an expert such as CKM Home Loans on your side, Click Here to fill in their online application form and apply to their home loan assistance service.