Switching Costs

Switching Costs

What will it cost to switch a home loan?

All the costs involved with switching are often included in the new home loan although they can be paid for separately.

Here is a list of the costs involved in switching a home loan:

Initiation Fee – the administration fee charged by the new bank, +/- R300.
Bond Registration Fee – Attorneys fees payable upon signing the agreement to take up the loan offer with issuing bank, this is usually a percentage of the registered home loan amount.
Valuation Fee – The valuer’s fee for performing a thorough valuation on your home, +/- R1000.
Cancellation Fee – administration fee payable to your existing bank upon cancellation, +/- R1300 .

IMPORTANT: A 90-day notice period is required by our current bank.
This is to avoid any penalty fees, which normally amounts to three months interest on your outstanding home loan amount.