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The A to Z process of buying a house and applying for a home loan

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  • February 25, 2020
The A to Z process of buying a house and applying for a home loan

You have come to that point in your life where you have decided to invest in your future wealth by buying a property. Purchasing a home and registering a home loan can be a stressful and lengthy process. It helps to know the processes and parties involved and the steps required for home loan registration.

Parties involved:
•  Seller
•  Property Practitioner / Estate Agent
•  Buyer
•  Bond Originator
•  Transferring Attorney (appointed by seller to transfer the property to the buyer’s name)
•  Home loan Attorney (appointed by the bank granting the home loan)
•  Cancellation Attorney (appointed by the bank cancelling the home loan of the seller, where necessary)


  1. Do your sums

First things first, you will need to calculate the monthly home loan repayment that you will be able to afford. The amount is calculated based on your monthly household income and expenses. You can also check your bond repayments on a desired bond amount. Make use of our handy “Bond Calculator” and “Affordability Calculator” on


  1. Understand the costs

Putting down a deposit

You may need to put some of your own money on the table before you can buy a house. Depending on your financial situation, some home loan products allow you to qualify for larger home loans without paying a deposit.


The right package

The banks have a wide range of financial products tailored to meet your individual requirements. It’s important to choose a Home Loan package that works for you.


Plan for additional costs

Be aware of other once-off costs that you will have to pay, over and above the deposit. These include initiation and administration fees, legal costs, bond registration fees and VAT/transfer duty.


  1. Get pre-qualified

Getting pre-qualified will give you an indication on whether you qualify for a home loan or not and will let prospective sellers know you are a serious buyer. Get in contact with one of our knowledgeable bond originators at Property.CoZa Financial Services who will assist you through the process of getting pre-qualified.


  1. Find a property

Now that you know what you can afford, it’s time to start with the big search.

First you need to determine what your needs are when it comes to searching for the perfect home. Secondly determine in which area you would like to live.


  1. Partner with a Property.CoZa Property Practitioner

When you have identified the areas that you feel you would like to buy, choose one of our many Property.CoZa Property Practitioners in that area. They are area specialists and will be able to discuss a full area report about what the average selling price is of properties in that specific area.


  1. Sign an offer to purchase (OTP)

Once you and your Property Practitioner have managed to find your perfect property match. You offer to buy a property from the Seller by signing an Offer to Purchase (OTP) which the Seller will consider and either accept or decline. The estate agent will present the OTP to the Seller. Once the Seller signs the OTP, the contract is valid and conveyancing process can begin.


  1. Apply for a home loan through Property.CoZa Financial Services (PFS)

Our offices work closely with our bond origination specializing and they will send your OTP to PFS to handle the process of applying for a home loan. They will apply to multiple banks, including your own, for a home loan and will come back to you with various offers from the banks, allowing you to choose the option best suited to you.

Required documentation for First Time Buyers:

  • Valid South African ID or passport and a copy thereof
  • A copy of your spouse’s ID or passport, if married
  • Proof of current residential address (i.e. municipal account, Telkom account or valid TV license)
  • Employer’s physical address and telephone number
  • Marriage certificate
  • Pay slip
  • Offer to Purchase

Required documentation for existing homeowners:

  • Valid South African ID or passport and a copy thereof
  • A copy of your spouse’s ID or passport, if married
  • Proof of current residential address (i.e. municipal account, Telkom account or valid TV license)
  • Employer’s physical address and telephone number
  • Marriage certificate
  • Payslip
  • Offer to Purchase
  • Six months statements on the existing home loan if you have a home loan with another financial institution
  • Existing home loan account number for existing customers
  • The registration number of the company, trust, close corporation, if applicable


  1. Accept the quote

Select a home loan offer that suits you best. Bear in mind that the amount might be lower than expected.


  1. Instruction sent

The Seller will instruct their Transferring Cancellation Attorney to cancel the existing bond (if applicable). The relevant conveyancing Attorneys are instructed to carry out the transfer and bond registration by the bank. Title deeds and cancellation figures are requested from the bank currently holding the bond. A rate clearance is from the local authorities/municipality.


  1. Signing of documents

Once all the conditions have been met, the transfer and bond documents are drafted by the relevant attorneys. The buyer and seller sign the respective transfer documents. The buyer signs the bond documents. All relevant transfer costs are paid by the buyer. The seller pays their rates accounts, including advanced rates, if required. The transfer attorney applies for a transfer duty receipt from SARS, a Rates Clearance Certificate and a Levy Certificate, then  makes the necessary payments.


  1. Compliance certificates to be supplied

The seller is now required to provide the following compliance certificates:


  • Electrical
  • Plumbing
  • Beetle (where applicable)
  • Gas
  • Electric Fence


  1. Guarantees are provided

The Attorneys provide Guarantees from the Buyer’s bank for the purchase price, or the balance of the purchase price, if a deposit is being paid up front. The Seller’s existing bond on the property is prepared to be cancelled. The Attorneys ensure FICA compliance as a protective measure against fraud.


  1. Lodgement

When all documents are signed, costs are paid and certificates have been obtained, the documents are prepared for lodgement at the Deeds Office.


  1. Registration & Proceeds

The Conveyances appear at the Deeds Office to register the Title Deeds.

Ownership passes from the seller to the buyer.

The buyer’s new bond is registered.

The guarantees are paid.

The seller is paid out the net proceeds.

The Estate Agent is paid their commission.

The new owner takes occupation of their new property.


  1. After the sale is complete

After approximately three months, the original Title Deed and Bond documents are delivered back to the Attorneys by the Deeds Office. The original Title Deed is delivered to the Bank (if the property is bonded) or to the Owner (if not bonded). A copy of these documents is normally sent to the buyer and seller by the Attorneys.

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