Buying your first home in South Africa

Start with the numbers, not the viewings

It is tempting to start by going to show days. Start with a budget instead. Falling for a house you cannot finance is the most common first-time-buyer heartbreak, and it is avoidable.

Most banks will not let a bond repayment take more than about 30% of your gross monthly income, and they look at your other debt, your credit record and how stable your income is. Our affordability calculator shows what that means for you in a minute.

Then get pre-approved (sometimes called pre-qualification). A bank, or a bond originator who applies to several banks at once, checks your income and credit and tells you roughly what you can borrow. Bond originators are usually paid by the bank, not by you, but ask. A pre-approval is not a final approval, but it tells you which price band to search in and shows sellers you are serious.

The cash you need on top of the price

The bond pays the seller. It usually does not pay the costs of buying, and those are due in cash before the house is registered in your name. Plan for:

• Transfer duty, paid to SARS. As at 1 April 2026 there is none on a home of R1 210 000 or less; above that it rises in bands.
• The transfer attorney’s (conveyancer’s) fees and the Deeds Office fees for transferring the property.
• The bond attorney’s fees and Deeds Office fees for registering the bond.
• A deposit, if the bank asks for one. Some first-time buyers get a 100% bond, but a deposit lowers your repayment and improves your chances.
• Moving costs, connection deposits for water and electricity, and a small fund for repairs in the first months.

Help for first-time buyers

Households in a lower and middle income band may qualify for a government subsidy towards a first home, now called First Home Finance (it used to be FLISP). The income limits and amounts change, so check the current rules with the National Housing Finance Corporation or your bank before you count on it.

Freehold or sectional title?

With a freehold house you own the land and the building and look after everything yourself. With sectional title (most flats and many townhouse complexes) you own your unit and a share of the common property, and you pay a monthly levy to the body corporate for insurance, maintenance and security.

Before you offer on a sectional title unit, ask for the levy amount, the latest financial statements, recent minutes of the trustees’ meetings, the conduct rules, and whether a special levy has been raised or is planned. A healthy reserve fund matters: an underfunded body corporate often means a large special levy later.

Making an offer

In South Africa an offer to purchase becomes a binding sale agreement once the seller signs it. Read every page before you sign. A few clauses deserve special attention:

• Suspensive conditions, especially that the sale depends on your bond being approved by a certain date. Without it you could be bound to buy a house you cannot finance.
• The occupation date and any occupational rent if you move in before (or the seller stays after) transfer.
• The voetstoots clause. It means you buy the house as it stands, but a seller who knew about a hidden defect and hid it can still be held responsible. Ask about problems directly and get the answers in writing; agents must also give you the seller’s signed property condition disclosure.
• Which compliance certificates the seller provides. An electrical certificate of compliance is required, and depending on the house and the area also gas, electric fence, plumbing and beetle certificates.

From signature to keys

Once the offer is signed and the bond is approved, the seller’s transfer attorney handles the transfer, and the bank’s attorney registers the bond. You will sign documents at the attorney, pay the transfer costs, and wait for the Deeds Office to register the property in your name. This commonly takes a few months; ask the attorney for an expected date.

On registration day the house is yours. Your bond repayments start, and so do municipal rates and, for sectional title, the levy.

Before you go

This guide is general information, not legal or financial advice. For your own situation, speak to your bank, a bond originator or a conveyancer. When you are ready, use the transfer cost calculator to see the cash you will need on top of the price, and start browsing homes in your price band.