Step-by-step guide to buying a home

Buying a home can be a long, difficult process and scary too! But, don’t let that put you off. We’ve put together a guide to help you understand what you need to do, what you can expect and how to do it. Now you can easily get the home you need without blowing your budget.

Before you buy

Find out what you can afford

Know exactly what you can afford and how much your loan repayments will cost you.

Find out what I can afford

Calculate my repayments

Get pre-qualified

Get a certificate to help you understand what finance you may qualify for towards the purchase of a property.

Get pre-qualified now

Find your home

See thousands of available homes across South Africa on Private Property.

Go to PrivateProperty.co.za

Making an offer

When you find the home you want you will need to make an offer.

Do some research on the prices of houses in the area – is the seller asking too much?
Check out the market conditions – is it a good time to buy? Speak to an estate agent or property expert for advice
Look at the size, features and condition of the property – will it need repairs or extensions?
Read the offer to purchase carefully to understand what your rights and obligations are, before signing.

How to make your offer
Make a written offer with the amount you wish to pay, with all other conditions of your offer for the seller to consider.

The estate agent will present this to the seller/’s or their representative.

They will accept, reject or make you a counteroffer.
Understanding the offer to purchase
The offer to purchase will determine how much you will pay for the property, so make sure it suits your pocket and that you have considered all the associated costs.

Check that the property description, purchase price and other details are correct.

The offer must include all the conditions you agreed to.

It should state the buyer’s date of occupation and the agreed occupational rent.

It should state which fixtures and fittings are sold with the house.

Remove any clause stating that the estate agent may deduct commission from the buyer’s deposit before registration and transfer of the property

For properties with a value of less than R250 000 there is an automatic cooling off period of five working days, during which you can cancel your offer — the agreement should stipulate this to avoid misunderstanding.

If you are unsure , always seek advice first before signing

Apply for your home loan

Your home loan application doesn’t have to be hard or complicated. Just follow the steps below:

Apply for your home loan

Applying for a Home Loan with us is easy - either fill out the convenient online application or call us on 0860 111 007.

When we receive your application we will:

Assess your financial details.
Perform a credit check.
Validate your documents.
Validate the property details.

Receive an outcome

If your application is approved in principle:

We will make you a loan offer - this is how much your loan could be.
If you accept the loan offer, we will do a property valuation to confirm the value of the property.
We will then make you a final offer.
Should you accept our quote, we will instruct the registration attorneys to register your bond

Consider your insurance needs.

If your property is free-standing you will have to get Home Owners Comprehensive insurance (HOC) policy before your bond is registered.
Life insurance may be mandatory for your home loan or you may want to protect your family should something happen to you (death or disability).
Check out our insurance offerings for more information on how we can assist you.

Transfer and bond registration.

This is the legal process required to:

Transfer the property into your name
Register a bond (home loan) with us, your bank

The attorneys will first contact you to sign the necessary documents.

Once you have signed all the documents, the attorneys will lodge them at the deeds office.
It takes two to three weeks for the documents to be inspected.
The whole process (from start to registration) can take up to 3 months.
On registration the home will be yours!

Moving into your new home

It’s time to make your move. This is going to be a big day so start planning early.

Plan your move

Confirm and arrange your move-in date and time with the seller or agent.
Book a removal company or arrange with friends to help you move.
Get packing — label the boxes, keep valuables in a safe place and set aside a box of essentials that you can use on moving day.
Visit the seller before they move out and ask them to show you where things like the electricity box and electricity meter and check that any special conditions agreed to in the contract have been met.
Make sure all the keys are labelled and left in one place — remember the outbuildings, windows and all doors.
Make sure any insurance cover you’ve taken out related to your property, home contents or Life cover is active immediately.
Make sure your car and Home Contents insurance is updated with your new property address.

Making your move

If the house has not been cleaned, have it cleaned before you unpack anything.
Put boxes in the rooms where they will be unpacked.
Start unpacking the kitchen boxes so that you’ll be able to make something to eat and drink.
Then move to the bedrooms so that you’ll have somewhere to sleep if you don’t finish in one day.

Occupational rent

If you move in before the transfer and bond has been registered in your name, the seller could ask you to pay occupational rent.
The amount would have been stipulated in your offer to purchase, if not it is recommended that this be agreed upon in writing before you take occupation to avoid any dispute.
You will need to pay occupational rent while you are living in the house until transfer and bond registration takes place.

Municipal deposits

You will need to register your new rates accounts into your name – do this yourself or ask your attorney to assist.
You will then have to pay a deposit for utilities (such as water and lights) and a monthly fee towards rates and taxes
Do this before you move in so you will have electricity (if not prepaid) and water when you arrive.