A bond (mortgage) is the method of raising funds from a bank for the purpose of buying a property.          If you do not have a valid work or residency permit (I.e. you are non resident), you are only able to borrow 50% of the purchase price of your property. If you are in possession of permanent residency, 100% of the purchase price is in theory available, however banks are more likely to lend in the region of 70 – 80%. For individuals on a work permit, a 100% loan is far more difficult to obtain and individuals should expect to pay a deposit in the region of 25%.         Interest rates are currently low for South Africa and bonds are readily available between 9.5 – 11% interest. When purchasing a property you should be aware of the following: The vendors (sellers) appoints the transfer attorneys (you may appoint your own bond registration attorneys) and this firm will be used by both parties. You can appoint your own attorneys to check the transaction, but you will still have to affect the transfer via the vendor’s choice and pay this firm. Banks do not carry out structural surveys on your proposed purchase, if you require this again you will need to appoint one yourself. Stamp duty and buying costs equate to approximately 8% of your purchase price. Estate agents fees are levied against the vendor and are typically 7% but can be negotiated. Bonds These can be arranged before you arrive in South Africa simply via fax or e-mail. Access bonds are an excellent way of maintaining access to your capital. As an example even if you pay cash for your property a bond can be registered against it. Therefore if your house is valued at R1.5 million you can register a bond for R750 000.  Although it costs a small amount of money to register the bond you pay nothing in interest until you draw on the access bond. The ability to draw up to this level is contractual at the outset of the bond so no further checks etc are required. For the overseas purchaser who may wish to preserve capital until they have settled into their new environment a bond is an excellent way of keeping that financial safety net with the ability to pay off lump sums, draw down on the access bond at any stage and keep open that loan facility. Hints and Tips Utilize the service of an independent bond originator, they are able to source the market place for the most competitive deal. Ensure you see a qualified financial advisor to arrange any associated insurances. Make sure your bond has an access facility. South Africa Immigration