LEARN MORE ABOUT BOND FINANCE
Q: What are the costs involved in bond origination?
A: We provide a FREE bond application service, but you should be aware of the standard fees involved in obtaining a home loan. Please see below.
Q: Transfer Duties/ Conveyancers fees
A: It is important to note that even though the Seller appoints the transferring attorney and they act on behalf of the Seller, it is the Purchaser, who is liable to pay the transferring attorneys for services rendered.
These costs are based on a sliding scale depending on the value of the property and there is a recommended amount that conveyancers should charge. Only Purchasers who are purchasing a property worth more than R750 000 will pay transfer duties.
Q: Bond Registration Fees
A: The bond registration attorneys represent the bank. As with the transfer attorneys, it is the Purchaser’s responsibility to pay for the services of the registration attorney. Payment is typically required after all necessary documentation has been completed and signed by the Purchaser.
Q: Rates and Taxes
A: The Purchaser will have to pay all rates and taxes 4 months in advance before the registration of the property can take place. In addition, the conveyancer must obtain a Rates Clearance Certificate from the Local Municipality to verify that there are no outstanding Rates and Taxes payable by the Seller. The municipality will not issue the Rates Clearance Certificate until the outstanding rates are paid. The Purchaser pays for this even though it is the Seller’s clearance.
Q: Financial Institutions
A: A once-off fee is charged by the Bank to open a loan account; this is called the initiation fee, which is usually R 5985. A monthly administration fee is also charged after registration of the bond and is debited to the Home Loan account; the fee is approximately R 68.40 per month.
Q: Occupational Rent
A: In an instance where the Purchaser moves into a new home before the registration has been changed to their name, the Purchaser will be liable to pay occupational rent to the Seller until completion of the transfer. This amount must be stipulated in your offer to purchase.
Q: How are you associated with OOBA?
A: We aggregate via EVO, a member of the OOBA group.
Q: Will my financial information be made available to third parties?
A: No, all information is strictly confidential and only the parties involved in the processing of your application are privy to that information.
Q: Can you renegotiate an existing bond agreement?
A: We can negotiate with the various banks to get the best interest rate and terms and conditions for you when seeking a bond. We can unfortunately not renegotiate should the agreement be registered in the deeds office already.
Q: Are you affiliated to any particular bank?
A: We are affiliated to all the major banks, ABSA, Standard Bank, FNB, Nedbank, RMB, Investec, Merchantile Bank, Ithala Bank.
Q: Can you submit applications for properties outside of the Western Cape?
A: Yes we deal with bond finance for properties throughout South Africa.
Q: How long will I need to wait for pre-qualification?
A: Applications are pre-approved within 2-3 days of receiving all the necessary information.
Q: Will a pre-qualification from Swift Bonds be accepted by Sellers in the same way as a pre-qualification directly from one of the main banks?
A: Yes, we use the same matrix that the banks use, to qualify a client. However one should remember that the final decision still remains with the respective credit managers at the banks at the time of submission of an application.
Q: If I am a South African Resident working abroad, can I apply for bond finance to purchase a property in SA?
A: Yes, if you are a SA resident working and living abroad temporarily, a mortgage bond can be secured. Most banks will look at granting up to a maximum of a 70 – 80% loan but each application is reviewed on individual merit by the credit manager.