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After You Buy

Owning a house comes with costs and responsibilities. Some are immediate others are long term costs that you will incur once you have bought a house:

Loan administration costs
The bank will charge a fee for processing of the loan. This is a onetime fee paid upon signing a letter of loan agreement with bank. In some cases, the fee is 1% of the loan and includes legal costs and stamp duty, fire insurance, mortgage protection insurance for the borrower and valuation fees.

Transfer costs
Includes legal fees, certificate of search and registration fee.

Deed Suretyship fees
If the purchaser registers property in another name apart from his, for example, that of a spouse or child, he must pay this fee. The bank is ensuring that it will be paid back in case you, as the borrower is unable to pay back.

Loan repayment
Every month you will be expected to pay the amount you agreed with the bank as a repayment for the mortgage loan.

Ledger fee
When you take a mortgage loan, the bank requires you open a mortgage account. This account attracts a ledger fee that varies from bank to bank.

Mortgage insurance
Some banks will require you get a life insurance to cover the risk in case you die before you complete the mortgage. Others will ask you to get an annual fire and mortgage protection insurance premium. They may ask you to apply independently or it is included as part of their administration fee.

Municipal rates and services
This is payment for local authority expenses to provide you with services such as road and sewage maintenance, garbage collection and street lighting. They are usually paid annually.

Maintenance of property
Since you now own the property and want to keep it in good shape, you must maintain it regularly and this costs money.

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