Understanding Bond Costs: What to Expect When Applying for Your Loan
Applying for a bond can seem overwhelming, but knowing what costs to expect can help you navigate the process more smoothly.
Here’s a breakdown of the key bond costs:
- Initiation Fee – A once-off fee charged by the bank for processing your bond application. This is typically added to your loan amount.
- Valuation Fee – The cost of having the property appraised to determine its value. This ensures the bank is lending an appropriate amount.
- Bond Registration Fee – A fee for registering the bond at the Deeds Office. This cost can vary depending on the loan amount.
- Transfer Duty – If you’re buying property, you’ll need to pay transfer duty, which is a percentage of the property’s value.
- Homeowners Insurance – Lenders usually require homeowners insurance to protect the property against damages, ensuring that both you and the bank are covered.
- Monthly Bond Repayments – Your monthly bond repayment will include both the principal amount and interest charged on the loan.
- Additional Costs – Don’t forget about moving costs, property inspections, and legal fees, which may also arise during the bond application process.
ANGOR Property Specialists can refer you to trusted partners who can guide you through the process and ensure you understand the full financial picture before applying for your bond.
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